VSEC - Aviation Industry Gearing Up For An Aftermarket Supercycle Says Analyst | Benzinga
William Blair analyst Louie DiPalma has initiated coverage of the shares of Boeing Company (NYSE: BA), Transdigm Group Incorporated (NYSE: TDG), and Heico Corporation (NYSE: HEI). The analyst reiterated an Outperform rating on the shares of VSE Corporation (NASDAQ: VSEC).
According to the analyst, depressed aircraft production for the past three years, combined with revenge travel, will result in an aftermarket supercycle for the next decade.
Boeing (Initiated at Outperform): Boeing is one of the two largest commercial aircraft manufacturers in the world, supplying a global fleet of more than 10,000 jetliners.
Boeing and Airbus collectively generate over $70 billion in annual commercial aircraft revenue, operating in a duopoly market, noted the analyst.
The analyst expects Chinese airlines to soon resume purchases of Boeing B737 MAX for the first time since 2017.
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