BoeingStock – There’s Plenty to Like About Aerospace Stocks, Including Boeing. Here’s Why.
Wall Street is starting to take notice of the aerospace sector’s recovery, growing more and more optimistic about the prospects of the whole 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’s just like going to Buy from Hold on a stock, except it is for a complete sector.
She’s additionally far more bullish on shares of Boeing (ticker: BA), raising her price goal to $274 from $250 a share. Liwag says there’s a “line of sight to a much healthier backdrop.” That is very good news for aerospace investors.
Air travel was decimated by the worldwide pandemic, taking aerospace and traveling stocks down with it. On April 14, 87,534 individuals boarded planes in the U.S., according to details from the Transportation Security Administration, the lowest number throughout the pandemic and down an amazing ninety six % year over year. The number has since risen. On Sunday, 1.3 million individuals passed through TSA checkpoints.
Investors have previously noticed things are getting much better for the aerospace industry as well as broader traveling restoration. Boeing stock rose in excess of 20 % this past week. Additional travel-related stocks have moved too. 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, nonetheless, can continue to get much better from here, Liwag noted. BoeingStock are down aproximatelly forty % from their all time high. “From the conversations of ours with investors, the [aerospace] group is still primarily under owned,” wrote 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 business view. Additional aerospace suppliers she recommends are actually Spirit AeroSystems (SPR) as well as Raytheon Technologies (RTX). Her other Buy rated stocks include defense suppliers like Lockheed Martin (LMT).
Lwiag’s peers are 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, nevertheless, are having difficulty keeping up with the newest gains. The average analyst price target for Boeing stock is just $236, below the $268 level that shares were 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 slightly.
BoeingStock – There is Plenty to Like About Aerospace Stocks, Including Boeing. Here is Why.