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 funding view about the aerospace industry to Attractive from Cautious. That’s like going to Buy from Hold on a stock, except it’s for a complete sector.
She’s additionally far more bullish on shares of Boeing (ticker: BA), raising her price target to $274 from $250 a share. Liwag indicates that there’s a “line of sight to a healthier backdrop.” That’s news which is good for aerospace investors.
Air travel was decimated by the worldwide pandemic, taking aerospace and travel stocks down with it. On April 14, 87,534 individuals boarded planes in the U.S., according to data from the Transportation Security Administration, probably the lowest number during the pandemic and down an astounding 96 % year over year. The number has since risen. On Sunday, 1.3 million folks passed by TSA checkpoints.
Investors already have noticed things are getting much better for the aerospace industry as well as broader travel recovery. Boeing stock rose greater than 20 % this past week. Additional travel related stocks have moved too. American Airlines (AAL) shares, for example, jumped fourteen % this past week. United Airlines (UAL) shares rose 11 %. Inventory in cruise operator Carnival (CCL) rose nine %.
Things, nonetheless, can continue to get much better from here, Liwag noted. BoeingStock are actually down aproximatelly forty % from their all-time high. “From the chats of ours with investors, the [aerospace] class is still primarily under owned,” posted the analyst. She sees Covid-19 vaccine rollouts and easing of cross country travel restrictions as additional catalysts that can drive sector stocks higher in the coming months.
Liwag rated Boeing shares Buy before publishing her updated industry view. Other aerospace suppliers she advises are Spirit AeroSystems (SPR) as well as Raytheon Technologies (RTX). Her other Buy-rated stocks include defense suppliers including 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, nevertheless, are having problems keeping up with recent gains. The regular analyst price target for Boeing stock is just $236, below the $268 level that shares were trading at on Monday.
BoeingStock was down aproximatelly 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.