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 increasingly optimistic about the prospects of the whole industry including beleaguered Boeing.
Friday evening, Morgan Stanley analyst Kristine Liwag moved the investment view of her regarding the aerospace industry to Attractive from Cautious. That’s just like going to Buy from Hold on a stock, except it’s for an entire sector.
She is additionally far more bullish on shares of Boeing (ticker: BA), raising her price target to $274 from $250 a share. Liwag says there’s a “line of sight to a healthier backdrop.” That is news that is good for aerospace investors.
Air travel was decimated by the worldwide pandemic, taking aerospace as well as traveling stocks down with it. On April fourteen, 87,534 individuals boarded planes in the U.S., as reported by information from the Transportation Security Administration, probably the lowest number during the pandemic and down an amazing 96 % year over year. That number has since risen. On Sunday, 1.3 million individuals passed through TSA checkpoints.
Investors have noticed things are getting much better for the aerospace industry as well as broader travel restoration. Boeing stock rose greater than twenty % this past week. Other travel-related stocks have moved as well. 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 %.
Items, nevertheless, can continue to get much better from here, Liwag noted. BoeingStock are actually down aproximatelly 40 % from their all-time high. “From the chats of ours with investors, the [aerospace] team 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 advises are actually Spirit AeroSystems (SPR) and Raytheon Technologies (RTX). Her other Buy rated stocks include defense suppliers like Lockheed Martin (LMT).
Lwiag’s peers are actually coming around to her much more bullish view. Around 50 % 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 recent gains. The typical analyst price target for Boeing stock is just $236, below 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 somewhat.
BoeingStock – There’s Plenty to Like About Aerospace Stocks, Including Boeing. Here’s Why.