Boeing Co. shares are likely to trade lower by the time this week’s Paris Air Show ends, analysts at Canaccord Genuity said in a recent note.
“The historical stock trade has been to buy Boeing and the suppliers into the air show, but look for Boeing
stock to underperform coming out of the air show,” the analysts wrote. The show ends Sunday.
Boeing on Monday officially launched the 737 Max 10, the largest of the company’s single-aisle planes, at the show. Boeing is expected to reveal the complete order book this week and it said Monday it already had 10 customers committed to buy the plane.
Boeing shares traditionally have outperformed the broader market one month before the show, but usually underperform the market one month after the show, they said.
The show itself is more subdued this year. Held in either Paris or London each summer, the air show is “typically the most important event of the year” for aircraft makers, and an opportunity for major commercial order announcements, the Canaccord analysts said.
Shares of Boeing have gained 28% this year, which compares with gains slightly above 9% for the SP 500 index
and gains of 21% for competitor Airbus SE.
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