JPMorgan: Bizjet Demand Still in the 'Doldrums'

JPMorgan North American Equity Research says demand for new business jets is "still in the doldrums." As proof, the firm said Cessna Citations aren't even 70 percent sold out this year, while Embraer "has seen little pickup in demand" for its executive jets. "Gulfstream was the most bullish OEM to report" in the first quarter, JPMorgan noted, "but funded backlog fell by about $800 million due to about $1 billion of defaults." According to the company's aerospace analyst, Joseph Nadol III, "New bizjet demand is one of the few areas in commercial aerospace not to show signs of a healthy bounce this year. We expect one eventually, but believe it could still be a few quarters away."