Skip to Content
US Videos

We Think These Aircraft Engine-Makers Are Undervalued

GE and Rolls-Royce are our top picks in the wide-body commercial aircraft industry.

We Think These Aircraft Engine-Makers Are Undervalued
Mentioned: , , ,

Chris Higgins: We recently took a deeper look at the wide-body commercial aircraft market. These are larger jets that seat over 230 passengers and are used on long-haul routes. These aircraft are manufactured by Boeing and Airbus. Wide-body engines are also a duopoly with GE and Rolls-Royce dominating the market.

We project about 8,600 wide-body deliveries over the next 20 years. Our forecast for smaller wide-body demand of roughly 6,400 aircraft is higher than other market forecasts due to our belief that the shift toward smaller wide bodies like the 787 and a smaller variance of the A350 will continue and be more pronounced than most industry analysts believe with negative implications for Boeing's 777X and for Airbus' A350-1000.

To view this article, become a Morningstar Basic member.

Register for Free

Chris Higgins does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.