BoeingStock – There’s 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 progressively more optimistic about the prospects of the whole industry including beleaguered Boeing.
Friday evening, Morgan Stanley analyst Kristine Liwag moved her investment view about 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 also more bullish on shares of Boeing (ticker: BA), raising her price goal to $274 from $250 a share. Liwag says there is a “line of sight to a healthier backdrop.” That’s 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., as reported by 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 individuals passed through TSA checkpoints.
Investors already have noticed the situation is getting better for the aerospace industry as well as broader travel recovery. Boeing stock rose in excess of twenty % this past week. Additional travel related stocks have moved also. American Airlines (AAL) shares, for example, jumped 14 % this past week. United Airlines (UAL) shares rose 11 %. Inventory in cruise operator Carnival (CCL) rose nine %.
Items, however, can easily still get better from here, Liwag noted. BoeingStock are down about forty % from their all-time high. “From the conversations 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 will drive sector stocks higher in the coming months.
Liwag rated Boeing shares Buy before publishing her updated industry view. Additional aerospace suppliers she advises 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 coming around to her much more bullish view. Around fifty % 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 typical analyst price target for Boeing stock is only $236, under the $268 level which shares were 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.