BoeingStock – There is Plenty to Like About Aerospace Stocks, Including Boeing. Here’s Why.
Wall Street is actually starting to take notice of the aerospace sector’s recovery, growing progressively more optimistic about the prospects of the entire industry including beleaguered Boeing.
Friday evening, Morgan Stanley analyst Kristine Liwag moved the funding view of her about the aerospace industry to Attractive from Cautious. That’s like going to Buy from Hold on a stock, besides it’s for an entire sector.
She is also far more bullish on shares of Boeing (ticker: BA), raising her price target to $274 from $250 a share. Liwag indicates that there is 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 and traveling stocks down with it. On April fourteen, 87,534 individuals boarded planes in the U.S., as reported by information from the Transportation Security Administration, probably the lowest number during the pandemic and down an incredible ninety six % year over year. The number has since risen. On Sunday, 1.3 million individuals passed by TSA checkpoints.
Investors already have noticed the situation is getting much better for the aerospace industry and broader travel restoration. Boeing stock rose greater than 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 %. Inventory in cruise operator Carnival (CCL) rose 9 %.
Items, nevertheless, can still get much better from here, Liwag noted. BoeingStock are actually down aproximatelly forty % from their all-time high. “From our conversations with investors, the [aerospace] team is still primarily under owned,” wrote 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 proposes are Spirit AeroSystems (SPR) as well as Raytheon Technologies (RTX). Her various other Buy-rated stocks include defense suppliers like Lockheed Martin (LMT).
Lwiag’s peers are actually coming around to her more bullish view. Around fifty % of analysts covering BoeingStock rate them Buy. At the April 2020 travel nadir, that number was under forty %. FintechZoom analysts, however, are having trouble keeping up with the latest gains. The average analyst price target for Boeing stock is only $236, below 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’s Plenty to Like About Aerospace Stocks, Including Boeing. Here is Why.