BoeingStock – There is Plenty to Like About Aerospace Stocks, Including Boeing. Here’s Why.
Wall Street is starting to take notice of the aerospace sector’s recovery, growing progressively more 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’s just like going to Buy from Hold on a stock, except it is for a complete sector.
She’s additionally more bullish on shares of Boeing (ticker: BA), raising her price goal to $274 from $250 a share. Liwag indicates that there is a “line of sight to a much healthier backdrop.” That is 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., as reported by details from the Transportation Security Administration, the lowest number during the pandemic and down an amazing 96 % year over year. That number has since risen. On Sunday, 1.3 million folks passed through TSA checkpoints.
Investors have already noticed things are getting better for the aerospace industry as well as broader traveling recovery. Boeing stock rose greater than 20 % this past week. Additional travel related stocks have moved also. American Airlines (AAL) shares, for example, jumped fourteen % this past week. United Airlines (UAL) shares rose 11 %. Stock in cruise operator Carnival (CCL) rose nine %.
Items, nonetheless, can easily still get much better from here, Liwag noted. BoeingStock are down about 40 % from their all time high. “From our chats with investors, the [aerospace] class is still largely under-owned,” wrote the analyst. She sees Covid 19 vaccine rollouts and easing of cross country travel restrictions as additional catalysts which will drive sector stocks higher in the coming months.
Liwag rated Boeing shares Buy before publishing her updated industry view. Other aerospace suppliers she recommends are actually Spirit AeroSystems (SPR) and Raytheon Technologies (RTX). The other Buy-rated stocks of her include defense suppliers such as Lockheed Martin (LMT).
Lwiag’s peers are coming around to her far more bullish view. Around 50 % of analysts covering BoeingStock rate them Buy. At the April 2020 travel-nadir, that number was less than 40 %. FintechZoom analysts, however, are having problems keeping up with the latest gains. The typical analyst price target for Boeing stock is only $236, below the $268 level which 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.