BoeingStock – There’s Plenty to Like About Aerospace Stocks, Including Boeing. Here is Why.
Wall Street is starting to take notice of the aerospace sector’s recovery, growing increasingly optimistic about the prospects of the entire industry which includes beleaguered Boeing.
Friday evening, Morgan Stanley analyst Kristine Liwag moved her investment 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 is additionally more bullish on shares of Boeing (ticker: BA), raising her price goal to $274 from $250 a share. Liwag indicates that there’s a “line of sight to a much healthier backdrop.” That’s great news for aerospace investors.
Air travel was decimated by the global pandemic, taking aerospace and traveling stocks down with it. On April 14, 87,534 individuals boarded planes in the U.S., as reported by data from the Transportation Security Administration, probably the lowest number throughout the pandemic and down an amazing 96 % year over year. The number has since risen. On Sunday, 1.3 million individuals passed through TSA checkpoints.
Investors have already noticed everything is getting better for the aerospace industry as well as broader traveling recovery. Boeing stock rose more than 20 % this past week. Additional 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 about forty % from their all time high. “From the chats of ours with investors, the [aerospace] team is still primarily under-owned,” had written the analyst. She sees Covid 19 vaccine rollouts and easing of cross-country travel restrictions as additional catalysts which will 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 Spirit AeroSystems (SPR) and Raytheon Technologies (RTX). Her other Buy rated stocks include defense suppliers such as Lockheed Martin (LMT).
Lwiag’s peers are coming around to her far more bullish view. Around fifty % of analysts covering BoeingStock rate them Buy. At the April 2020 travel nadir, that number was lower than forty %. FintechZoom analysts, however, are having difficulty keeping up with the latest gains. The regular analyst price target for Boeing stock is only $236, under the $268 level that 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 is Plenty to Like About Aerospace Stocks, Including Boeing. Here’s Why.