Jul. 15 at 7:56 PM
Morgan Stanley maintained a bullish view on aerospace, defense, and space ahead of Q2 earnings, citing resilient commercial aerospace demand, improving Boeing aircraft production, and favorable long-term defense spending trends. The firm highlighted strong aftermarket demand driven by high fleet utilization, low aircraft retirement rates, limited maintenance capacity, and ongoing engine servicing needs. Boeing's 737 MAX production has reached 47 aircraft per month, with additional certification milestones expected to support the sector.
On defense, Morgan Stanley believes investors continue to underestimate the likelihood of the U.S. FY2027 defense budget reaching roughly
$1.1 trillion, which could provide meaningful upside as supply chain conditions improve and missile production capacity expands. The firm also expects space companies to benefit from upcoming launch milestones, stronger order trends, and NASA's commercial space station initiatives.
$BA $FTAI $NOC $TDG