Morgan Stanley sees minimal downside risk for Boeing from China delivery halt

Morgan Stanley analyst Kristine Liwag notes that China has ordered its airlines not to take any further deliveries of Boeing (BA) aircraft in response to the U.S. decision to impose 145% tariffs on Chinese goods and that Beijing has also asked that Chinese carriers halt purchases of aircraft-related equipment and parts from U.S. companies. However, considering that China has not ordered many Boeing aircraft in the past few years and that Boeing aircraft deliveries to China only constitute less than 6% of total Boeing deliveries in 2025-2028, the firm sees “minimal downside risk for Boeing compared to 10 years ago,” when China accounted for about 20% of deliveries on a given year. The firm maintains an Equal Weight rating and $175 price target on Boeing shares.