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 including beleaguered Boeing.
Friday evening, Morgan Stanley analyst Kristine Liwag moved her funding view about the aerospace industry to Attractive from Cautious. That’s just like going to Buy from Hold on a stock, except it’s for a complete sector.
She’s additionally far more bullish on shares of Boeing (ticker: BA), raising her price target to $274 from $250 a share. Liwag says there is a “line of sight to a much healthier backdrop.” That is good news for aerospace investors.
Air travel was decimated by the global pandemic, taking aerospace as well as traveling stocks down with it. On April 14, 87,534 people boarded planes in the U.S., according to data from the Transportation Security Administration, probably the lowest number during the pandemic and down an astounding 96 % year over year. That number has since risen. On Sunday, 1.3 million folks passed through TSA checkpoints.
Investors have previously noticed everything is getting better for the aerospace industry and broader travel 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 %. Inventory in cruise operator Carnival (CCL) rose 9 %.
Items, however, can still get much better from here, Liwag noted. BoeingStock are down aproximatelly forty % from their all-time high. “From our conversations with investors, the [aerospace] class is still largely 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 business view. Additional aerospace suppliers she suggests are Spirit AeroSystems (SPR) and Raytheon Technologies (RTX). Her various other Buy rated stocks include defense suppliers such as Lockheed Martin (LMT).
Lwiag’s peers are actually coming around to her much more bullish view. More than 50 % of analysts covering BoeingStock rate them Buy. At the April 2020 travel nadir, that number was lower than forty %. FintechZoom analysts, however, are having problems keeping up with the latest gains. The average analyst price target for Boeing stock is just $236, below the $268 level which shares had been 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 is Why.