BoeingStock – There’s Plenty to Like About Aerospace Stocks, Including Boeing. Here is Why.
Wall Street is starting to take notice of the aerospace sector’s recovery, growing increasingly optimistic about the prospects of the whole industry which includes beleaguered Boeing.
Friday evening, Morgan Stanley analyst Kristine Liwag moved the funding view of her regarding the aerospace industry to Attractive from Cautious. That’s just like going to Buy from Hold on a stock, besides it’s for a complete sector.
She is also far 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 healthier backdrop.” That’s news which is good for aerospace investors.
Air travel was decimated by the global pandemic, taking aerospace as well as traveling stocks down with it. On April fourteen, 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 incredible ninety six % year over year. The number has since risen. On Sunday, 1.3 million people passed through TSA checkpoints.
Investors have noticed things are getting better for the aerospace industry and broader travel recovery. Boeing stock rose more than twenty % this past week. Other travel related stocks have moved too. American Airlines (AAL) shares, for example, jumped 14 % this past week. United Airlines (UAL) shares rose 11 %. Stock in cruise operator Carnival (CCL) rose nine %.
Items, nevertheless, 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] class is still primarily under-owned,” had written the analyst. She sees Covid 19 vaccine rollouts and easing of cross country travel restrictions as further catalysts which will drive sector stocks higher in the coming months.
Liwag rated Boeing shares Buy before publishing her updated industry view. Additional aerospace suppliers she suggests are Spirit AeroSystems (SPR) and Raytheon Technologies (RTX). Her various other Buy rated stocks include defense suppliers including Lockheed Martin (LMT).
Lwiag’s peers are coming around to her far more bullish view. Around 50 % 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 the latest gains. The average analyst price target for Boeing stock is only $236, under 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.