BoeingStock – There is Plenty to Like About Aerospace Stocks, Including Boeing. Here is Why.
Wall Street is actually beginning to take notice of the aerospace sector’s recovery, growing increasingly optimistic about the prospects of the entire industry including beleaguered Boeing.
Friday evening, Morgan Stanley analyst Kristine Liwag moved her investment view regarding the aerospace industry to Attractive from Cautious. That’s like going to Buy from Hold on a stock, besides it’s for an entire sector.
She is also more bullish on shares of Boeing (ticker: BA), raising her price goal to $274 from $250 a share. Liwag indicates that there’s a “line of sight to a much healthier backdrop.” That’s fantastic news for aerospace investors.
Air travel was decimated by the global pandemic, taking aerospace and 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, the lowest number throughout the pandemic and down an incredible ninety six % year over year. The number has since risen. On Sunday, 1.3 million people passed through TSA checkpoints.
Investors have already noticed the situation is getting better for the aerospace industry as well as broader traveling recovery. Boeing stock rose more than twenty % 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 still get better from here, Liwag noted. BoeingStock are down aproximatelly 40 % from their all time high. “From the conversations of ours with investors, the [aerospace] group is still largely under-owned,” published the analyst. She sees Covid 19 vaccine rollouts and easing of cross-country travel restrictions as more catalysts which will drive sector stocks higher in the coming months.
Liwag rated Boeing shares Buy before publishing her updated business view. Additional aerospace suppliers she advises are Spirit AeroSystems (SPR) as well as Raytheon Technologies (RTX). Her various other Buy rated stocks include defense suppliers like Lockheed Martin (LMT).
Lwiag’s peers are coming around to her much more bullish view. Over 50 % of analysts covering BoeingStock rate them Buy. At the April 2020 travel-nadir, that number was under forty %. FintechZoom analysts, nonetheless, are having difficulty keeping up with recent gains. The regular analyst price target for Boeing stock is just $236, under the $268 level that 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 somewhat.
BoeingStock – There’s Plenty to Like About Aerospace Stocks, Including Boeing. Here is Why.