Boeing's Commercial Market Outlook Seems Optimistic
Boeing (NYSE: BA) regards its commercial market outlook as "the most comprehensive analysis of the commercial aviation industry." As such, it's widely followed by suppliers, industry observers, and aerospace investors. Unfortunately, the latest outlook, released Oct. 6, raises as many questions as it answers and for aerospace investors it makes sense to be cautious before pricing in some of the assumptions made by Boeing. Here's why.
To be clear, it's not that the idea of a recovery looks optimistic, rather that Boeing's assumptions appear to be overly optimistic. That matters a lot, at least for original equipment suppliers that gear up production in order to meet Boeing's production schedules. Presumably, Boeing makes its production plans based on its outlook.
Boeing needs airplanes to start flying again. Image source: Getty Images.
Source Fool.com
