BoeingStock – There’s Plenty to Like About Aerospace Stocks, Including Boeing. Here is Why.
Wall Street is actually beginning 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 funding view of her about the aerospace industry to Attractive from Cautious. That is like going to Buy from Hold on a stock, except it is for a complete sector.
She’s additionally far more bullish on shares of Boeing (ticker: BA), raising her price goal to $274 from $250 a share. Liwag says there’s a “line of sight to a much healthier backdrop.” That’s news that is good for aerospace investors.
Air travel was decimated by the worldwide pandemic, taking aerospace and travel stocks down with it. On April fourteen, 87,534 people boarded planes in the U.S., based on data from the Transportation Security Administration, the lowest number throughout the pandemic and down an amazing 96 % year over year. That number has since risen. On Sunday, 1.3 million people passed through TSA checkpoints.
Investors already have noticed things are getting better for the aerospace industry as well as broader traveling recovery. Boeing stock rose in excess of 20 % this past week. Other travel related stocks have moved also. American Airlines (AAL) shares, for instance, jumped fourteen % this past week. United Airlines (UAL) shares rose 11 %. Stock in cruise operator Carnival (CCL) rose 9 %.
Things, nevertheless, can continue to get better from here, Liwag noted. BoeingStock are down about 40 % from their all time high. “From our chats with investors, the [aerospace] group is still primarily under-owned,” wrote the analyst. She sees Covid-19 vaccine rollouts and easing of cross country travel restrictions as additional catalysts that can drive sector stocks higher in the coming months.
Liwag rated Boeing shares Buy before publishing her updated industry view. Additional aerospace suppliers she proposes are Spirit AeroSystems (SPR) and Raytheon Technologies (RTX). The various other Buy-rated stocks of her include defense suppliers such as Lockheed Martin (LMT).
Lwiag’s peers are actually coming around to her more bullish view. Over fifty % of analysts covering BoeingStock rate them Buy. At the April 2020 travel-nadir, that number was under forty %. FintechZoom analysts, nevertheless, are having difficulty keeping up with the latest gains. The typical analyst price target for Boeing stock is only $236, under the $268 level which shares were 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 somewhat.
BoeingStock – There is Plenty to Like About Aerospace Stocks, Including Boeing. Here is Why.