BoeingStock – There is Plenty to Like About Aerospace Stocks, Including Boeing. Here’s Why.
Wall Street is beginning to take notice of the aerospace sector’s recovery, growing more and more optimistic about the prospects of the entire industry including 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 is for a whole sector.
She’s also more bullish on shares of Boeing (ticker: BA), raising her price goal to $274 from $250 a share. Liwag says there is a “line of sight to a much healthier backdrop.” That is news that is good for aerospace investors.
Air travel was decimated by the global pandemic, taking aerospace and traveling stocks down with it. On April fourteen, 87,534 people boarded planes in the U.S., according to details from the Transportation Security Administration, the lowest number throughout the pandemic and down an astounding 96 % year over year. That number has since risen. On Sunday, 1.3 million individuals passed through TSA checkpoints.
Investors have already noticed everything is getting much better for the aerospace industry as well as broader travel restoration. Boeing stock rose greater than 20 % this past week. Additional travel-related stocks have moved as well. 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 %.
Items, nonetheless, can easily still get much better from here, Liwag noted. BoeingStock are actually down about forty % from their all time high. “From our conversations with investors, the [aerospace] group 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 business view. Additional aerospace suppliers she suggests are actually Spirit AeroSystems (SPR) as well as Raytheon Technologies (RTX). Her other Buy-rated stocks include defense suppliers like 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 lower than forty %. FintechZoom analysts, nonetheless, are having trouble keeping up with recent gains. The regular analyst price target for Boeing stock is only $236, below the $268 level which shares were 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.