BoeingStock – There’s Plenty to Like About Aerospace Stocks, Including Boeing. Here is Why.
Wall Street is actually starting 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 funding view regarding the aerospace industry to Attractive from Cautious. That’s just like going to Buy from Hold on a stock, except it is for a complete sector.
She’s also 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 healthier backdrop.” That is news which is good for aerospace investors.
Air travel was decimated by the worldwide pandemic, taking aerospace and travel stocks down with it. On April 14, 87,534 people boarded planes in the U.S., as reported by details from the Transportation Security Administration, probably the lowest number throughout the pandemic and down an incredible 96 % year over year. That number has since risen. On Sunday, 1.3 million people passed by TSA checkpoints.
Investors have previously noticed the situation is getting better for the aerospace industry and broader traveling recovery. Boeing stock rose greater than twenty % this past week. Other travel-related stocks have moved also. American Airlines (AAL) shares, for example, jumped 14 % this past week. United Airlines (UAL) shares rose 11 %. Stock in cruise operator Carnival (CCL) rose 9 %.
Items, nevertheless, can still get better from here, Liwag noted. BoeingStock are actually down aproximatelly 40 % from their all time high. “From our conversations with investors, the [aerospace] team 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 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 advises 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 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 difficulty keeping up with the newest gains. The average analyst price target for Boeing stock is just $236, below 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 somewhat.
BoeingStock – There is Plenty to Like About Aerospace Stocks, Including Boeing. Here is Why.