BoeingStock – There is Plenty to Like About Aerospace Stocks, Including Boeing. Here is Why.
Wall Street is beginning to take notice of the aerospace sector’s recovery, growing increasingly optimistic about the prospects of the whole 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 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 healthier backdrop.” That’s good news for aerospace investors.
Air travel was decimated by the worldwide pandemic, taking aerospace as well as travel stocks down with it. On April fourteen, 87,534 people boarded planes in the U.S., as reported by details from the Transportation Security Administration, probably the lowest number during the pandemic and down an incredible ninety six % year over year. That number has since risen. On Sunday, 1.3 million folks passed by TSA checkpoints.
Investors have previously noticed things are getting much better for the aerospace industry as well as broader travel restoration. Boeing stock rose more than 20 % this past week. Additional travel-related stocks have moved too. American Airlines (AAL) shares, for instance, jumped 14 % this past week. United Airlines (UAL) shares rose 11 %. Inventory in cruise operator Carnival (CCL) rose nine %.
Items, however, can continue to get better from here, Liwag noted. BoeingStock are down about forty % from their all time high. “From the conversations of ours with investors, the [aerospace] team is still largely under-owned,” published 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 business view. Additional aerospace suppliers she suggests are Spirit AeroSystems (SPR) and Raytheon Technologies (RTX). The other Buy-rated stocks of her include defense suppliers like Lockheed Martin (LMT).
Lwiag’s peers are actually coming around to her much more bullish view. More than 50 % of analysts covering BoeingStock rate them Buy. At the April 2020 travel nadir, that number was less than forty %. FintechZoom analysts, however, are having difficulty keeping up with recent gains. The typical analyst price target for Boeing stock is only $236, below the $268 level that shares had been 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 slightly.
BoeingStock – There is Plenty to Like About Aerospace Stocks, Including Boeing. Here’s Why.