Sell Boeing shares because of lower plane profitability, Trump trade policy risk, RBC says

An employee works on the nose of a Boeing airplane at the company's facility in Everett, Washington.
Mike Kane | Bloomberg | Getty Images

RBC Capital Markets initiated coverage of Boeing shares at an underperform rating because of the prospect of declining profit margins in its commercial airplane business and the risk of President-elect Donald Trump's trade policy agenda.

"We have found a strong correlation between Boeing's commercial operating margins and the average age of Boeing's platforms. ... We see signs that this is already starting to drive commercial margin pressure," analyst Matthew McConnell wrote in a note to clients Wednesday.

"It is unclear how President Trump will differ from 'candidate Trump,' but following through on the protectionist policies that were central to his campaign could be a headwind to the commercial aerospace sector," he added.