BoeingStock – There’s 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 which includes beleaguered Boeing.
Friday evening, Morgan Stanley analyst Kristine Liwag moved her investment view regarding the aerospace industry to Attractive from Cautious. That’s just like going to Buy from Hold on a stock, besides it is for a complete sector.
She’s also 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’s good news for aerospace investors.
Air travel was decimated by the worldwide pandemic, taking aerospace and traveling stocks down with it. On April fourteen, 87,534 people boarded planes in the U.S., as reported by information from the Transportation Security Administration, the lowest number throughout the pandemic and down an astounding 96 % year over year. That number has since risen. On Sunday, 1.3 million folks passed by TSA checkpoints.
Investors have already noticed things are getting better for the aerospace industry and broader travel recovery. Boeing stock rose more than 20 % this past week. Additional travel related stocks have moved also. 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 actually down aproximatelly 40 % from their all time high. “From our conversations with investors, the [aerospace] group is still largely under owned,” posted 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 proposes are Spirit AeroSystems (SPR) and Raytheon Technologies (RTX). The other Buy-rated stocks of her include defense suppliers including Lockheed Martin (LMT).
Lwiag’s peers are coming around to her far more bullish view. More than 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 average analyst price target for Boeing stock is only $236, below the $268 level which shares were 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 somewhat.
BoeingStock – There is Plenty to Like About Aerospace Stocks, Including Boeing. Here’s Why.