BoeingStock – There is Plenty to Like About Aerospace Stocks, Including Boeing. Here is Why.
Wall Street is actually starting to take notice of the aerospace sector’s recovery, growing progressively more optimistic about the prospects of the whole 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 is like going to Buy from Hold on a stock, besides it’s for a whole sector.
She’s also more bullish on shares of Boeing (ticker: BA), raising her price goal to $274 from $250 a share. Liwag indicates that there’s 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 as well as travel stocks down with it. On April 14, 87,534 people boarded planes in the U.S., according to data from the Transportation Security Administration, probably 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 people passed by TSA checkpoints.
Investors have noticed everything is getting better for the aerospace industry and broader traveling recovery. Boeing stock rose greater than twenty % this past week. Other travel-related stocks have moved also. American Airlines (AAL) shares, for example, jumped fourteen % this past week. United Airlines (UAL) shares rose 11 %. Inventory in cruise operator Carnival (CCL) rose nine %.
Things, nonetheless, can easily still get much better from here, Liwag noted. BoeingStock are down about 40 % from their all time high. “From the chats of ours with investors, the [aerospace] class 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 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 recommends are Spirit AeroSystems (SPR) as well as Raytheon Technologies (RTX). Her various other Buy rated stocks include defense suppliers such as Lockheed Martin (LMT).
Lwiag’s peers are actually coming around to her much more bullish view. More than 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 difficulty keeping up with the latest gains. The regular analyst price target for Boeing stock is only $236, under the $268 level which shares were 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 is Plenty to Like About Aerospace Stocks, Including Boeing. Here’s Why.