BoeingStock – There is Plenty to Like About Aerospace Stocks, Including Boeing. Here is Why.
Wall Street is actually starting to take notice of the aerospace sector’s recovery, growing more and more optimistic about the prospects of the whole industry which includes beleaguered Boeing.
Friday evening, Morgan Stanley analyst Kristine Liwag moved her investment view about 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 is additionally far 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 healthier backdrop.” That is news which is good for aerospace investors.
Air travel was decimated by the worldwide pandemic, taking aerospace and travel stocks down with it. On April 14, 87,534 people boarded planes in the U.S., based on data from the Transportation Security Administration, probably the lowest number throughout 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 have noticed things are getting much better for the aerospace industry and broader traveling recovery. Boeing stock rose more than twenty % this past week. Additional 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 %.
Items, however, can easily still get much better from here, Liwag noted. BoeingStock are down aproximatelly 40 % from their all time high. “From our conversations with investors, the [aerospace] class is still largely 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. Other aerospace suppliers she advises are Spirit AeroSystems (SPR) as well as Raytheon Technologies (RTX). The other Buy-rated stocks of her include defense suppliers like Lockheed Martin (LMT).
Lwiag’s peers are coming around to her much more bullish view. Over fifty % 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 recent gains. The regular analyst price target for Boeing stock is just $236, under 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.