BoeingStock – There is Plenty to Like About Aerospace Stocks, Including Boeing. Here is Why.
Wall Street is actually beginning to take notice of the aerospace sector’s recovery, growing more and more optimistic about the prospects of the whole industry including beleaguered Boeing.
Friday evening, Morgan Stanley analyst Kristine Liwag moved her funding view regarding the aerospace industry to Attractive from Cautious. That is just like going to Buy from Hold on a stock, except it’s for a whole sector.
She’s also 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’s fantastic news 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 throughout the pandemic and down an astounding ninety six % year over year. That number has since risen. On Sunday, 1.3 million folks passed by TSA checkpoints.
Investors have already noticed things are getting better for the aerospace industry and broader travel recovery. Boeing stock rose more than twenty % this past week. Additional travel related stocks have moved as well. American Airlines (AAL) shares, for instance, jumped 14 % this past week. United Airlines (UAL) shares rose 11 %. Inventory in cruise operator Carnival (CCL) rose 9 %.
Items, nonetheless, can easily still get better from here, Liwag noted. BoeingStock are actually down about forty % from their all time high. “From our conversations with investors, the [aerospace] group is still primarily under owned,” had written the analyst. She sees Covid 19 vaccine rollouts and easing of cross-country travel restrictions as further catalysts that can drive sector stocks higher in the coming months.
Liwag rated Boeing shares Buy before publishing her updated industry view. Other aerospace suppliers she suggests are Spirit AeroSystems (SPR) as well as Raytheon Technologies (RTX). Her other Buy-rated stocks include defense suppliers like Lockheed Martin (LMT).
Lwiag’s peers are actually coming around to her more bullish view. Over fifty % of analysts covering BoeingStock rate them Buy. At the April 2020 travel nadir, that number was under 40 %. FintechZoom analysts, however, are having trouble keeping up with recent gains. The typical analyst price target for Boeing stock is only $236, under the $268 level which 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 is Why.