BoeingStock – There is Plenty to Like About Aerospace Stocks, Including Boeing. Here’s Why.
Wall Street is actually starting to take notice of the aerospace sector’s recovery, growing increasingly optimistic about the prospects of the whole industry including beleaguered Boeing.
Friday evening, Morgan Stanley analyst Kristine Liwag moved her investment view regarding the aerospace industry to Attractive from Cautious. That is like going to Buy from Hold on a stock, besides it is for an entire sector.
She’s also far more bullish on shares of Boeing (ticker: BA), raising her price objective to $274 from $250 a share. Liwag says there’s a “line of sight to a much healthier backdrop.” That is news that is good for aerospace investors.
Air travel was decimated by the global pandemic, taking aerospace as well as traveling stocks down with it. On April fourteen, 87,534 individuals boarded planes in the U.S., as reported by data from the Transportation Security Administration, the lowest number throughout the pandemic and down an incredible ninety six % year over year. That number has since risen. On Sunday, 1.3 million individuals passed through TSA checkpoints.
Investors already have noticed the situation is getting much better for the aerospace industry and broader traveling recovery. Boeing stock rose greater 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 nine %.
Things, nevertheless, can continue to get much 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,” 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 industry view. Other aerospace suppliers she recommends are Spirit AeroSystems (SPR) as well as Raytheon Technologies (RTX). Her various other Buy-rated stocks include defense suppliers like Lockheed Martin (LMT).
Lwiag’s peers are actually 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 40 %. FintechZoom analysts, nonetheless, are having problems keeping up with the newest gains. The typical analyst price target for Boeing stock is just $236, below the $268 level which 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.