BoeingStock – There is Plenty to Like About Aerospace Stocks, Including Boeing. Here’s 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 her funding view regarding the aerospace industry to Attractive from Cautious. That’s just like going to Buy from Hold on a stock, besides it is for an entire 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 much healthier backdrop.” That is news that is good for aerospace investors.
Air travel was decimated by the global pandemic, taking aerospace as well as travel stocks down with it. On April fourteen, 87,534 individuals boarded planes in the U.S., based on information from the Transportation Security Administration, probably the lowest number during the pandemic and down an incredible 96 % year over year. That number has since risen. On Sunday, 1.3 million people passed through TSA checkpoints.
Investors have previously noticed the situation is getting better for the aerospace industry and broader travel recovery. Boeing stock rose in excess of 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 %. Stock in cruise operator Carnival (CCL) rose 9 %.
Things, however, can still get much better from here, Liwag noted. BoeingStock are down about 40 % from their all time high. “From our conversations with investors, the [aerospace] class 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 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 advises are Spirit AeroSystems (SPR) as well as Raytheon Technologies (RTX). Her various other Buy-rated stocks include defense suppliers including Lockheed Martin (LMT).
Lwiag’s peers are coming around to her much more bullish view. Over fifty % of analysts covering BoeingStock rate them Buy. At the April 2020 travel-nadir, that number was under forty %. FintechZoom analysts, nonetheless, are having trouble keeping up with the newest gains. The typical analyst price target for Boeing stock is just $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 is Plenty to Like About Aerospace Stocks, Including Boeing. Here is Why.