BoeingStock – There’s Plenty to Like About Aerospace Stocks, Including Boeing. Here is Why.
Wall Street is actually starting to take notice of the aerospace sector’s recovery, growing progressively more optimistic about the prospects of the whole industry including beleaguered Boeing.
Friday evening, Morgan Stanley analyst Kristine Liwag moved the investment view of her regarding the aerospace industry to Attractive from Cautious. That’s like going to Buy from Hold on a stock, besides it is for a complete sector.
She’s also more bullish on shares of Boeing (ticker: BA), raising her price goal to $274 from $250 a share. Liwag says there is a “line of sight to a much healthier backdrop.” That’s very good news for aerospace investors.
Air travel was decimated by the worldwide pandemic, taking aerospace as well as traveling stocks down with it. On April fourteen, 87,534 individuals boarded planes in the U.S., as reported by data from the Transportation Security Administration, probably the lowest number during the pandemic and down an amazing 96 % year over year. That number has since risen. On Sunday, 1.3 million folks passed by TSA checkpoints.
Investors have already noticed the situation is getting better for the aerospace industry and broader travel recovery. Boeing stock rose greater than 20 % this past week. Other travel-related stocks have moved too. American Airlines (AAL) shares, for instance, jumped fourteen % this past week. United Airlines (UAL) shares rose 11 %. Inventory in cruise operator Carnival (CCL) rose 9 %.
Things, nonetheless, can continue to get better from here, Liwag noted. BoeingStock are actually down aproximatelly 40 % from their all time high. “From our chats with investors, the [aerospace] team is still largely under owned,” wrote the analyst. She sees Covid-19 vaccine rollouts and easing of cross-country travel restrictions as further catalysts that can drive sector stocks higher in the coming months.
Liwag rated Boeing shares Buy before publishing her updated business view. Additional aerospace suppliers she proposes are actually Spirit AeroSystems (SPR) and Raytheon Technologies (RTX). Her other Buy rated stocks include defense suppliers such as Lockheed Martin (LMT).
Lwiag’s peers are coming around to her more bullish view. Over fifty % of analysts covering BoeingStock rate them Buy. At the April 2020 travel-nadir, that number was lower than forty %. FintechZoom analysts, nonetheless, are having trouble keeping up with the latest gains. The average analyst price target for Boeing stock is just $236, below the $268 level which shares had been trading at on Monday.
BoeingStock was down about 0.5 % in trading Monday. The S&P 500 and Dow Jones Industrial Average were both down slightly.
BoeingStock – There is Plenty to Like About Aerospace Stocks, Including Boeing. Here’s Why.