BoeingStock – There is Plenty to Like About Aerospace Stocks, Including Boeing. Here is Why.
Wall Street is starting to take notice of the aerospace sector’s recovery, growing more and more optimistic about the prospects of the whole industry which includes beleaguered Boeing.
Friday evening, Morgan Stanley analyst Kristine Liwag moved the investment view of her regarding the aerospace industry to Attractive from Cautious. That is 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 target to $274 from $250 a share. Liwag says there is a “line of sight to a much healthier backdrop.” That is news which is good for aerospace investors.
Air travel was decimated by the worldwide pandemic, taking aerospace and travel stocks down with it. On April fourteen, 87,534 people boarded planes in the U.S., based on details from the Transportation Security Administration, the lowest number during the pandemic and down an astounding ninety six % year over year. That number has since risen. On Sunday, 1.3 million individuals passed through TSA checkpoints.
Investors already have noticed things are getting much better for the aerospace industry as well as broader traveling recovery. Boeing stock rose more 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 %.
Things, nonetheless, can continue to get better from here, Liwag noted. BoeingStock are actually down about 40 % from their all-time high. “From our conversations with investors, the [aerospace] team is still primarily under-owned,” published 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 business view. Additional aerospace suppliers she suggests are Spirit AeroSystems (SPR) and Raytheon Technologies (RTX). Her various other Buy-rated stocks include defense suppliers including Lockheed Martin (LMT).
Lwiag’s peers are actually 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 lower than 40 %. FintechZoom analysts, nonetheless, are having problems keeping up with recent gains. The regular analyst price target for Boeing stock is just $236, below 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 slightly.
BoeingStock – There’s Plenty to Like About Aerospace Stocks, Including Boeing. Here’s Why.