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 increasingly optimistic about the prospects of the entire industry which includes 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, except it’s for an entire sector.
She’s also 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 news that is good for aerospace investors.
Air travel was decimated by the global pandemic, taking aerospace and travel stocks down with it. On April fourteen, 87,534 people boarded planes in the U.S., according to data from the Transportation Security Administration, probably the lowest number during the pandemic and down an amazing ninety six % year over year. That number has since risen. On Sunday, 1.3 million individuals passed by TSA checkpoints.
Investors have already noticed things are 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 too. American Airlines (AAL) shares, for example, jumped 14 % this past week. United Airlines (UAL) shares rose 11 %. Inventory in cruise operator Carnival (CCL) rose nine %.
Things, however, can easily still get better from here, Liwag noted. BoeingStock are down aproximatelly 40 % from their all-time high. “From our conversations with investors, the [aerospace] team is still primarily under-owned,” published 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 business view. Other aerospace suppliers she advises are actually Spirit AeroSystems (SPR) and Raytheon Technologies (RTX). The other Buy-rated stocks of her include defense suppliers such as Lockheed Martin (LMT).
Lwiag’s peers are actually coming around to her far more bullish view. More than fifty % of analysts covering BoeingStock rate them Buy. At the April 2020 travel-nadir, that number was under forty %. FintechZoom analysts, nevertheless, are having trouble keeping up with recent 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 somewhat.
BoeingStock – There is Plenty to Like About Aerospace Stocks, Including Boeing. Here is Why.