Analyst Sees Commercial Aerospace Shares Rising

PITTSBURGH (AP) — Commercial aerospace stocks have surged in recent weeks, but one analyst said Friday shares of Boeing Co. and other companies in the sector are poised for further growth.

In a note to investors, Barclays Capital analyst Joseph F. Campbell wrote commercial aerospace stocks had climbed 36 percent since the beginning of April compared with the S&P 500's rise of 18 percent during the same period.

"Our view is that over the next 1-3 years, Boeing and the commercial aerospace companies could have another 75 percent to 100 percent move before the real commercial aerospace industry upturn is likely to be seen in the 2013-2015 timeframe, and at that time there should yet be a further move upward," he wrote.

Campbell wrote that his firm believes commercial aerospace shares were "very oversold on worries about the industry that were far too extreme, and the majority of the share price move has come from the realization that the commercial environment did not require production cuts of 30 percent to 50 percent and even sharper dramatic reductions to earnings."

Boeing has announced plans to lower production of its twin-aisle 777 starting next year, as well as plans to delay stepped-up production of its 747-8 and 767 planes. But production schedules for its 737, the world's best-selling commercial jet, and its long-awaited 787 — a hot-selling aircraft designed for fuel efficiency with lightweight carbon composite parts — remain unchanged.