BoeingStock – There is 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 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 like going to Buy from Hold on a stock, except it is for a complete sector.
She is additionally far more bullish on shares of Boeing (ticker: BA), raising her price objective to $274 from $250 a share. Liwag indicates that there is a “line of sight to a healthier backdrop.” That is great news for aerospace investors.
Air travel was decimated by the global pandemic, taking aerospace as well as traveling stocks down with it. On April 14, 87,534 people boarded planes in the U.S., according to details from the Transportation Security Administration, probably 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 by TSA checkpoints.
Investors already have noticed everything is getting much better for the aerospace industry as well as broader traveling restoration. Boeing stock rose more than twenty % this past week. Other travel related stocks have moved too. American Airlines (AAL) shares, for example, jumped fourteen % this past week. United Airlines (UAL) shares rose 11 %. Stock in cruise operator Carnival (CCL) rose 9 %.
Things, nonetheless, can still get better from here, Liwag noted. BoeingStock are actually down aproximatelly 40 % from their all-time high. “From our conversations with investors, the [aerospace] team is still largely under-owned,” posted 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. Other aerospace suppliers she advises are actually Spirit AeroSystems (SPR) and Raytheon Technologies (RTX). Her various other Buy rated stocks include defense suppliers like Lockheed Martin (LMT).
Lwiag’s peers are coming around to her more bullish view. Over 50 % of analysts covering BoeingStock rate them Buy. At the April 2020 travel-nadir, that number was less than forty %. FintechZoom analysts, nevertheless, are having problems keeping up with the newest 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 about 0.5 % in trading Monday. The S&P 500 and Dow Jones Industrial Average were both down somewhat.
BoeingStock – There is Plenty to Like About Aerospace Stocks, Including Boeing. Here’s Why.