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 increasingly optimistic about the prospects of the whole industry which includes beleaguered Boeing.
Friday evening, Morgan Stanley analyst Kristine Liwag moved the investment view of her 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 whole sector.
She is additionally 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 healthier backdrop.” That is news that is good for aerospace investors.
Air travel was decimated by the worldwide pandemic, taking aerospace as well as travel stocks down with it. On April 14, 87,534 individuals boarded planes in the U.S., according to information from the Transportation Security Administration, probably 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 by TSA checkpoints.
Investors have noticed things are getting better for the aerospace industry and broader traveling recovery. Boeing stock rose greater than twenty % this past week. Other travel related stocks have moved as well. American Airlines (AAL) shares, for instance, jumped fourteen % this past week. United Airlines (UAL) shares rose 11 %. Stock in cruise operator Carnival (CCL) rose nine %.
Things, however, can easily still get much better from here, Liwag noted. BoeingStock are actually down aproximatelly 40 % from their all-time high. “From the conversations of ours with investors, the [aerospace] group is still primarily under owned,” posted 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. Additional aerospace suppliers she recommends are Spirit AeroSystems (SPR) and Raytheon Technologies (RTX). The other Buy rated stocks of her 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 forty %. FintechZoom analysts, however, are having trouble keeping up with recent gains. The typical analyst price target for Boeing stock is just $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 slightly.
BoeingStock – There is Plenty to Like About Aerospace Stocks, Including Boeing. Here’s Why.