BoeingStock – There’s Plenty to Like About Aerospace Stocks, Including Boeing. Here’s Why.
Wall Street is actually starting to take notice of the aerospace sector’s recovery, growing increasingly optimistic about the prospects of the entire industry including beleaguered Boeing.
Friday evening, Morgan Stanley analyst Kristine Liwag moved the investment view of her about the aerospace industry to Attractive from Cautious. That’s just like going to Buy from Hold on a stock, besides it is for a complete sector.
She is also 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 good news for aerospace investors.
Air travel was decimated by the global pandemic, taking aerospace and traveling stocks down with it. On April fourteen, 87,534 individuals boarded planes in the U.S., according to information from the Transportation Security Administration, the lowest number throughout the pandemic and down an amazing 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 much better for the aerospace industry as well as broader travel recovery. Boeing stock rose greater than 20 % this past week. Additional travel related stocks have moved as well. American Airlines (AAL) shares, for example, jumped 14 % this past week. United Airlines (UAL) shares rose 11 %. Stock in cruise operator Carnival (CCL) rose 9 %.
Things, however, can still get better from here, Liwag noted. BoeingStock are down about forty % from their all-time high. “From the chats of ours with investors, the [aerospace] group is still primarily under-owned,” published the analyst. She sees Covid-19 vaccine rollouts and easing of cross country travel restrictions as further catalysts which can 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) as well as Raytheon Technologies (RTX). The various other Buy rated stocks of her include defense suppliers including Lockheed Martin (LMT).
Lwiag’s peers are actually coming around to her more bullish view. Over 50 % of analysts covering BoeingStock rate them Buy. At the April 2020 travel nadir, that number was less than 40 %. FintechZoom analysts, nevertheless, are having trouble keeping up with the latest gains. The regular analyst price target for Boeing stock is only $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 slightly.
BoeingStock – There is Plenty to Like About Aerospace Stocks, Including Boeing. Here’s Why.