BoeingStock – There’s Plenty to Like About Aerospace Stocks, Including Boeing. Here is Why.
Wall Street is beginning to take notice of the aerospace sector’s recovery, growing increasingly optimistic about the prospects of the entire 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 is also more bullish on shares of Boeing (ticker: BA), raising her price objective to $274 from $250 a share. Liwag indicates that there is a “line of sight to a healthier backdrop.” That’s 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 fourteen, 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 incredible ninety six % year over year. The number has since risen. On Sunday, 1.3 million people passed by TSA checkpoints.
Investors already have noticed things are getting better for the aerospace industry and broader traveling recovery. Boeing stock rose greater than 20 % this past week. Other travel-related stocks have moved too. American Airlines (AAL) shares, for instance, jumped 14 % this past week. United Airlines (UAL) shares rose 11 %. Stock in cruise operator Carnival (CCL) rose 9 %.
Items, however, can still 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 more 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 suggests are Spirit AeroSystems (SPR) as well as Raytheon Technologies (RTX). Her other Buy-rated stocks include defense suppliers like Lockheed Martin (LMT).
Lwiag’s peers are 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 40 %. FintechZoom analysts, nevertheless, are having difficulty keeping up with recent gains. The typical analyst price target for Boeing stock is just $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’s Plenty to Like About Aerospace Stocks, Including Boeing. Here’s Why.