BoeingStock – There’s Plenty to Like About Aerospace Stocks, Including Boeing. Here is Why.
Wall Street is starting to take notice of the aerospace sector’s recovery, growing more and more optimistic about the prospects of the entire industry which includes beleaguered Boeing.
Friday evening, Morgan Stanley analyst Kristine Liwag moved her investment view about the aerospace industry to Attractive from Cautious. That is like going to Buy from Hold on a stock, except it is for a whole sector.
She is also far 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 healthier backdrop.” That is news that is good for aerospace investors.
Air travel was decimated by the worldwide pandemic, taking aerospace and travel stocks down with it. On April fourteen, 87,534 individuals boarded planes in the U.S., according to information from the Transportation Security Administration, probably the lowest number throughout the pandemic and down an amazing 96 % year over year. The number has since risen. On Sunday, 1.3 million people passed by TSA checkpoints.
Investors already have noticed the situation is getting much better for the aerospace industry and broader traveling recovery. Boeing stock rose in excess of 20 % this past week. Other travel-related stocks have moved also. American Airlines (AAL) shares, for instance, jumped 14 % this past week. United Airlines (UAL) shares rose 11 %. Stock in cruise operator Carnival (CCL) rose nine %.
Things, nevertheless, can still get better from here, Liwag noted. BoeingStock are actually down aproximatelly 40 % from their all-time high. “From the chats of ours with investors, the [aerospace] class is still primarily under owned,” published the analyst. She sees Covid 19 vaccine rollouts and easing of cross-country travel restrictions as more catalysts that 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 actually Spirit AeroSystems (SPR) and 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 more bullish view. Over fifty % of analysts covering BoeingStock rate them Buy. At the April 2020 travel nadir, that number was lower than forty %. FintechZoom analysts, nonetheless, are having difficulty keeping up with the latest gains. The average analyst price target for Boeing stock is just $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 is Plenty to Like About Aerospace Stocks, Including Boeing. Here’s Why.