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 entire industry which includes 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’s for an entire sector.
She’s 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’s news that is good for aerospace investors.
Air travel was decimated by the global pandemic, taking aerospace as well as traveling stocks down with it. On April 14, 87,534 people boarded planes in the U.S., based on information from the Transportation Security Administration, probably the lowest number throughout the pandemic and down an astounding 96 % year over year. The number has since risen. On Sunday, 1.3 million folks passed by TSA checkpoints.
Investors have previously noticed the situation is getting much better for the aerospace industry as well as broader travel restoration. Boeing stock rose more than 20 % this past week. Additional travel-related stocks have moved as well. 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, nonetheless, can easily still get better from here, Liwag noted. BoeingStock are actually down aproximatelly forty % from their all-time high. “From our conversations with investors, the [aerospace] group is still largely under owned,” wrote the analyst. She sees Covid-19 vaccine rollouts and easing of cross country travel restrictions as additional catalysts which can drive sector stocks higher in the coming months.
Liwag rated Boeing shares Buy before publishing her updated industry view. Additional aerospace suppliers she recommends are Spirit AeroSystems (SPR) as well as Raytheon Technologies (RTX). The other Buy rated stocks of her include defense suppliers like Lockheed Martin (LMT).
Lwiag’s peers are coming around to her far more bullish view. Around 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 problems keeping up with the latest gains. The average analyst price target for Boeing stock is only $236, under the $268 level which shares had been 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’s Why.