BoeingStock – There’s Plenty to Like About Aerospace Stocks, Including Boeing. Here’s 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 which includes beleaguered Boeing.
Friday evening, Morgan Stanley analyst Kristine Liwag moved her investment view about the aerospace industry to Attractive from Cautious. That’s just like going to Buy from Hold on a stock, besides it is for a complete sector.
She’s additionally more bullish on shares of Boeing (ticker: BA), raising her price goal to $274 from $250 a share. Liwag says there’s a “line of sight to a much healthier backdrop.” That’s news which is good for aerospace investors.
Air travel was decimated by the worldwide pandemic, taking aerospace as well as traveling stocks down with it. On April 14, 87,534 people boarded planes in the U.S., based on information from the Transportation Security Administration, probably the lowest number throughout the pandemic and down an amazing 96 % year over year. The number has since risen. On Sunday, 1.3 million individuals passed through TSA checkpoints.
Investors have previously noticed things are getting much better for the aerospace industry as well as broader travel 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 easily still get much better from here, Liwag noted. BoeingStock are down aproximatelly 40 % from their all-time high. “From the chats of ours with investors, the [aerospace] team is still primarily under-owned,” had written the analyst. She sees Covid-19 vaccine rollouts and easing of cross-country travel restrictions as additional catalysts which will drive sector stocks higher in the coming months.
Liwag rated Boeing shares Buy before publishing her updated industry view. Other aerospace suppliers she suggests are Spirit AeroSystems (SPR) as well as Raytheon Technologies (RTX). Her various other Buy-rated stocks include defense suppliers including Lockheed Martin (LMT).
Lwiag’s peers are coming around to her more bullish view. More than fifty % of analysts covering BoeingStock rate them Buy. At the April 2020 travel-nadir, that number was less than 40 %. FintechZoom analysts, nevertheless, are having problems keeping up with recent gains. The regular 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 is Why.