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 increasingly optimistic about the prospects of the whole industry including beleaguered Boeing.
Friday evening, Morgan Stanley analyst Kristine Liwag moved the funding view of her about the aerospace industry to Attractive from Cautious. That’s like going to Buy from Hold on a stock, except it’s for a whole sector.
She is additionally far more bullish on shares of Boeing (ticker: BA), raising her price target to $274 from $250 a share. Liwag says there’s a “line of sight to a much healthier backdrop.” That’s great news for aerospace investors.
Air travel was decimated by the worldwide pandemic, taking aerospace as well as travel stocks down with it. On April fourteen, 87,534 individuals boarded planes in the U.S., based on details 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 folks passed by TSA checkpoints.
Investors have noticed things are getting much better for the aerospace industry as well as broader travel restoration. Boeing stock rose greater than 20 % 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 %.
Items, nevertheless, can continue to get better from here, Liwag noted. BoeingStock are down aproximatelly forty % from their all-time high. “From the chats of ours with investors, the [aerospace] team 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 can drive sector stocks higher in the coming months.
Liwag rated Boeing shares Buy before publishing her updated industry view. Other aerospace suppliers she advises are Spirit AeroSystems (SPR) and Raytheon Technologies (RTX). The various other Buy rated stocks of her include defense suppliers including Lockheed Martin (LMT).
Lwiag’s peers are coming around to her much more bullish view. Over 50 % of analysts covering BoeingStock rate them Buy. At the April 2020 travel nadir, that number was lower than 40 %. FintechZoom analysts, nevertheless, are having problems keeping up with recent gains. The regular analyst price target for Boeing stock is just $236, under 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’s Plenty to Like About Aerospace Stocks, Including Boeing. Here is Why.