BoeingStock – There’s 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 progressively 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 is like going to Buy from Hold on a stock, except it is for a complete sector.
She is 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 healthier backdrop.” That’s good news for aerospace investors.
Air travel was decimated by the worldwide pandemic, taking aerospace as well as traveling stocks down with it. On April fourteen, 87,534 people boarded planes in the U.S., according to information from the Transportation Security Administration, the lowest number throughout the pandemic and down an amazing ninety six % year over year. That number has since risen. On Sunday, 1.3 million individuals passed through TSA checkpoints.
Investors have noticed things are getting much better for the aerospace industry and broader travel recovery. Boeing stock rose in excess of 20 % this past week. Additional travel-related stocks have moved too. American Airlines (AAL) shares, for example, jumped 14 % this past week. United Airlines (UAL) shares rose 11 %. Inventory 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 the chats of ours with investors, the [aerospace] team is still primarily under-owned,” published the analyst. She sees Covid 19 vaccine rollouts and easing of cross-country travel restrictions as more catalysts that can drive sector stocks higher in the coming months.
Liwag rated Boeing shares Buy before publishing her updated business view. Other aerospace suppliers she suggests are actually Spirit AeroSystems (SPR) as well as Raytheon Technologies (RTX). Her various other Buy rated stocks include defense suppliers including Lockheed Martin (LMT).
Lwiag’s peers are coming around to her far more bullish view. More than 50 % of analysts covering BoeingStock rate them Buy. At the April 2020 travel-nadir, that number was under 40 %. FintechZoom analysts, however, are having difficulty keeping up with the latest gains. The typical analyst price target for Boeing stock is just $236, below the $268 level that shares had been 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 slightly.
BoeingStock – There is Plenty to Like About Aerospace Stocks, Including Boeing. Here is Why.