BoeingStock – There is Plenty to Like About Aerospace Stocks, Including Boeing. Here’s 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 including beleaguered Boeing.
Friday evening, Morgan Stanley analyst Kristine Liwag moved her investment view regarding the aerospace industry to Attractive from Cautious. That’s just like going to Buy from Hold on a stock, besides it’s for a whole sector.
She’s additionally more bullish on shares of Boeing (ticker: BA), raising her price objective to $274 from $250 a share. Liwag indicates that there’s a “line of sight to a healthier backdrop.” That’s news which is good for aerospace investors.
Air travel was decimated by the global pandemic, taking aerospace and travel stocks down with it. On April fourteen, 87,534 people boarded planes in the U.S., according to data from the Transportation Security Administration, the lowest number during the pandemic and down an incredible 96 % year over year. The number has since risen. On Sunday, 1.3 million people passed by TSA checkpoints.
Investors have previously noticed everything is getting much better for the aerospace industry as well as broader traveling recovery. Boeing stock rose in excess of 20 % this past week. Additional travel related stocks have moved also. American Airlines (AAL) shares, for instance, jumped fourteen % this past week. United Airlines (UAL) shares rose 11 %. Inventory in cruise operator Carnival (CCL) rose nine %.
Things, nonetheless, can still get much better from here, Liwag noted. BoeingStock are down about 40 % from their all-time high. “From the chats of ours with investors, the [aerospace] class is still largely under owned,” had written the analyst. She sees Covid-19 vaccine rollouts and easing of cross country travel restrictions as further 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 recommends are actually Spirit AeroSystems (SPR) and Raytheon Technologies (RTX). Her various other Buy rated stocks include defense suppliers like Lockheed Martin (LMT).
Lwiag’s peers are coming around to her far 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, nevertheless, are having problems keeping up with the latest gains. The typical analyst price target for Boeing stock is only $236, under the $268 level that 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’s Plenty to Like About Aerospace Stocks, Including Boeing. Here is Why.