Boeing's annual investor meeting held 19 annual in Philadelphia didn't offer any answers regarding its future narrowbody aircraft programme, according to Wells Fargo research.
"We believe the analyst meeting did not clarify the likely plan for the 737NG (i.e., all new airplane or re-engine), but think Boeing is more likely to conclude that waiting for an all-new aircraft replacement is preferable," says Sam Pearlstein, senior analyst at Wells Fargo in a note. However, Boeing confirmed that if "Airbus does re-engine then Boeing is unlikely to choose not to do anything to the airplane", he adds.
Pearlstein indicates that "neither re-engining nor re-design seem appealing" in terms of financial returns at this stage. However, he reckons Boeing's ambiguity on near-to medium-term research and development requirements could produce an overhang on the manufacturer's shares.