BoeingStock – There is 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 more and more optimistic about the prospects of the entire industry which includes beleaguered Boeing.
Friday evening, Morgan Stanley analyst Kristine Liwag moved her funding view about the aerospace industry to Attractive from Cautious. That is just like going to Buy from Hold on a stock, except it’s for a whole sector.
She’s also far more bullish on shares of Boeing (ticker: BA), raising her price goal 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 and travel stocks down with it. On April 14, 87,534 individuals boarded planes in the U.S., as reported by data from the Transportation Security Administration, the lowest number during the pandemic and down an amazing ninety six % year over year. That number has since risen. On Sunday, 1.3 million people passed through TSA checkpoints.
Investors already have noticed everything is getting better for the aerospace industry and broader traveling recovery. Boeing stock rose in excess of twenty % this past week. Other travel related stocks have moved too. 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 %.
Items, however, can still get better from here, Liwag noted. BoeingStock are down aproximatelly 40 % from their all time high. “From the conversations of ours with investors, the [aerospace] group is still largely under owned,” had written the analyst. She sees Covid-19 vaccine rollouts and easing of cross-country travel restrictions as more catalysts that can drive sector stocks higher in the coming months.
Liwag rated Boeing shares Buy before publishing her updated business view. Other aerospace suppliers she advises are actually 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. More than fifty % of analysts covering BoeingStock rate them Buy. At the April 2020 travel nadir, that number was under 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 aproximatelly 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.