BoeingStock – There is Plenty to Like About Aerospace Stocks, Including Boeing. Heres Why.

BoeingStock – There’s 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 progressively more optimistic about the prospects of the entire 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 is just like going to Buy from Hold on a stock, except it is for an entire sector.

She’s also far more bullish on shares of Boeing (ticker: BA), raising her price target to $274 from $250 a share. Liwag indicates that there’s a “line of sight to a much healthier backdrop.” That’s very good news for aerospace investors.

Air travel was decimated by the worldwide pandemic, taking aerospace and travel stocks down with it. On April 14, 87,534 individuals boarded planes in the U.S., as reported by data from the Transportation Security Administration, the lowest number during the pandemic and down an incredible ninety six % year over year. The number has since risen. On Sunday, 1.3 million people passed by TSA checkpoints.

Investors already have noticed the situation is getting better for the aerospace industry and broader traveling restoration. Boeing stock rose greater than 20 % this past week. Other travel-related stocks have moved also. American Airlines (AAL) shares, for example, jumped 14 % this past week. United Airlines (UAL) shares rose 11 %. Inventory in cruise operator Carnival (CCL) rose nine %.

Things, nevertheless, can continue to get much better from here, Liwag noted. BoeingStock are down about 40 % from their all time high. “From our conversations 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 additional catalysts which will drive sector stocks higher in the coming months.

Liwag rated Boeing shares Buy before publishing her updated business view. Other aerospace suppliers she proposes are actually Spirit AeroSystems (SPR) as well as Raytheon Technologies (RTX). Her other Buy rated stocks include defense suppliers such as Lockheed Martin (LMT).

Lwiag’s peers are actually coming around to her far more bullish view. Around fifty % of analysts covering BoeingStock rate them Buy. At the April 2020 travel-nadir, that number was lower than 40 %. FintechZoom analysts, however, are having trouble keeping up with the latest gains. The average analyst price target for Boeing stock is just $236, under 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’s Plenty to Like About Aerospace Stocks, Including Boeing. Here is Why.