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 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 like going to Buy from Hold on a stock, except it’s for an entire sector.
She’s additionally more bullish on shares of Boeing (ticker: BA), raising her price target to $274 from $250 a share. Liwag indicates that 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 worldwide pandemic, taking aerospace as well as travel stocks down with it. On April 14, 87,534 individuals boarded planes in the U.S., based on data from the Transportation Security Administration, the lowest number during the pandemic and down an incredible 96 % year over year. That number has since risen. On Sunday, 1.3 million people passed through TSA checkpoints.
Investors have already noticed everything is getting much better for the aerospace industry as well as broader travel recovery. Boeing stock rose greater than 20 % this past week. Other travel-related stocks have moved as well. American Airlines (AAL) shares, for example, jumped fourteen % this past week. United Airlines (UAL) shares rose 11 %. Stock in cruise operator Carnival (CCL) rose nine %.
Items, nevertheless, can easily 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 largely under owned,” wrote the analyst. She sees Covid-19 vaccine rollouts and easing of cross country travel restrictions as further catalysts that can 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). Her various other Buy rated stocks include defense suppliers including Lockheed Martin (LMT).
Lwiag’s peers are coming around to her much more bullish view. Around 50 % of analysts covering BoeingStock rate them Buy. At the April 2020 travel-nadir, that number was under 40 %. FintechZoom analysts, nevertheless, are having difficulty keeping up with the newest gains. The average analyst price target for Boeing stock is just $236, under the $268 level which 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 is Why.