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 including beleaguered Boeing.
Friday evening, Morgan Stanley analyst Kristine Liwag moved her funding view regarding the aerospace industry to Attractive from Cautious. That’s like going to Buy from Hold on a stock, except it’s for a complete sector.
She’s additionally more bullish on shares of Boeing (ticker: BA), raising her price objective to $274 from $250 a share. Liwag says there is a “line of sight to a much healthier backdrop.” That is news which 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 14, 87,534 people boarded planes in the U.S., as reported by information from the Transportation Security Administration, the lowest number throughout the pandemic and down an amazing 96 % year over year. That number has since risen. On Sunday, 1.3 million individuals passed through TSA checkpoints.
Investors have already noticed everything is getting better for the aerospace industry as well as broader traveling recovery. Boeing stock rose more than twenty % this past week. Other travel-related stocks have moved too. American Airlines (AAL) shares, for example, jumped fourteen % this past week. United Airlines (UAL) shares rose 11 %. Stock in cruise operator Carnival (CCL) rose nine %.
Items, nevertheless, can continue to get much better from here, Liwag noted. BoeingStock are down aproximatelly 40 % from their all-time high. “From the conversations of ours with investors, the [aerospace] group is still largely under-owned,” had written 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) and Raytheon Technologies (RTX). The various other Buy rated stocks of her include defense suppliers such as Lockheed Martin (LMT).
Lwiag’s peers are actually coming around to her far more bullish view. Over 50 % of analysts covering BoeingStock rate them Buy. At the April 2020 travel nadir, that number was less than forty %. FintechZoom analysts, nonetheless, are having trouble keeping up with recent gains. The regular analyst price target for Boeing stock is only $236, under the $268 level that 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’s Plenty to Like About Aerospace Stocks, Including Boeing. Here is Why.