Famous Investor Calls Boeing (BA) Her “Pick of the Year”

Stephanie Link, Hightower Advisors’ Chief Investment Strategist, called Boeing (BA) her “pick of the year” in an appearance on CNBC earlier this week.

The plane maker’s production levels are climbing, and its free cash flow is expected to improve in the second half of the year, Link noted.

A landscape view of a passenger and cargo airplane taking off from the airport runway.

BA’s Execution Is Improving and Its Free Cash Flow Is Poised to Rebound

The company’s production levels are rising, a development that it expects to help enable its free cash flow to increase in the second half, the investor reported, adding that the shares usually trade based on the firm’s free cash flow. Moreover, its supply chains are rebounding, while it is managing the development of its 737 and 787 planes more effectively, according to Link.

Also importantly, the Street’s expectations for Boeing and BA stock are quite low at this point, she stated.

Other Positive Catalysts

Link is upbeat on BA’s new CEO. Additionally, she reported that the company expects to generate strong revenue from its maintenance and repair business over the next three years, since many planes that are being used now are old, while there is a shortage of new planes. The margins of this business are relatively high, Link stated.

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Disclosure: None. This article is originally published at Insider Monkey