BoeingStock – There is Plenty to Like About Aerospace Stocks, Including Boeing. Here is Why.
Wall Street is beginning 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 investment view of her about the aerospace industry to Attractive from Cautious. That’s just like going to Buy from Hold on a stock, except it is for an entire sector.
She’s additionally 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 healthier backdrop.” That’s fantastic news for aerospace investors.
Air travel was decimated by the worldwide pandemic, taking aerospace and traveling stocks down with it. On April fourteen, 87,534 individuals boarded planes in the U.S., based on information from the Transportation Security Administration, the lowest number throughout the pandemic and down an incredible 96 % year over year. That number has since risen. On Sunday, 1.3 million folks passed through TSA checkpoints.
Investors have previously noticed the situation is getting better for the aerospace industry as well as broader travel recovery. Boeing stock rose in excess of 20 % this past week. Other travel related stocks have moved too. American Airlines (AAL) shares, for example, jumped 14 % this past week. United Airlines (UAL) shares rose 11 %. Stock in cruise operator Carnival (CCL) rose nine %.
Things, however, can easily still get much better from here, Liwag noted. BoeingStock are actually down about 40 % from their all time high. “From our conversations with investors, the [aerospace] group is still primarily under owned,” had written the analyst. She sees Covid 19 vaccine rollouts and easing of cross country travel restrictions as further catalysts which will 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). Her other Buy-rated stocks include defense suppliers such as Lockheed Martin (LMT).
Lwiag’s peers are actually coming around to her much more bullish view. More than fifty % of analysts covering BoeingStock rate them Buy. At the April 2020 travel nadir, that number was lower than 40 %. FintechZoom analysts, nonetheless, are having trouble keeping up with the newest gains. The average analyst price target for Boeing stock is just $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’s Why.