The aircraft manufacturer’s high through-the-cycle return on capital profile should drive earnings and cash flow beyond current market expectations once broad air travel resumes, analysts pointed out, while recent global regulatory progress paves the way for a return to passenger service.
Despite the risks around the troubled 737 MAX, the aerospace company “is a beneficiary of what we believe remains a long-term secular growth trend in commercial air travel”.
Meanwhile, Disney is seen as one of the companies to benefit the most from a ‘return-to-normal’, according to the investment bank.
The entertainment giant has a huge footprint, from destination theme parks and cruises to the ABC advertising-supported broadcast television business.
More recently, its less-than-year-old streaming video offering Disney+ has over 60mln subscribers, “and Disney looks well-positioned to build on its streaming momentum as it prepares to launch a new general entertainment video service in International markets under its Star brand.”
Similarly, Starbucks is also expected to differentiate itself from competitors with innovations in its customer loyalty programme, online app purchasing, plus new in-store employee technology enhancements.
The expansion of these programmes to China should further support growth, underpinned by beverage innovation and in-store productivity tools to help boost sales and profitability as more consumers return to their daily routine.