Macquarie Research Equities has upgraded Spirit AeroSystems, Boeing, Honeywell, Goodrich, Triumph, TransDigm and United Technologies stock from Neutral to Outperform because of signs of improvement in airline traffic and air freight.
Improvements in April is a “convincing sign that the aerospace end markets have stabilized, and are likely to improve over the next six months,” said report today by Macquarie Research.
The aircraft financing market also appears to be improving. While the market remains tight, the increased role of government guarantors, such as the Ex-Im Bank in the U.S. and the backstop financing by manufacturers is helping. “With the capital markets seeming to have reopened, we think that this will improve the access to finance for new aircraft over time,” the report said.
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