BoeingStock – There’s Plenty to Like About Aerospace Stocks, Including Boeing. Here’s Why.
Wall Street is beginning 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 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 also 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 healthier backdrop.” That’s very good news for aerospace investors.
Air travel was decimated by the worldwide pandemic, taking aerospace and travel stocks down with it. On April 14, 87,534 individuals boarded planes in the U.S., based on information from the Transportation Security Administration, probably the lowest number during the pandemic and down an amazing 96 % year over year. That number has since risen. On Sunday, 1.3 million people passed through TSA checkpoints.
Investors have noticed things are getting much better for the aerospace industry as well as broader travel recovery. Boeing stock rose in excess of 20 % this past week. Additional travel related stocks have moved as well. American Airlines (AAL) shares, for example, jumped fourteen % this past week. United Airlines (UAL) shares rose 11 %. Stock in cruise operator Carnival (CCL) rose 9 %.
Items, nonetheless, can easily still get much better from here, Liwag noted. BoeingStock are down aproximatelly 40 % from their all time high. “From the conversations of ours with investors, the [aerospace] group is still largely under owned,” had written the analyst. She sees Covid 19 vaccine rollouts and easing of cross country travel restrictions as more catalysts which can drive sector stocks higher in the coming months.
Liwag rated Boeing shares Buy before publishing her updated business view. Additional aerospace suppliers she proposes are actually Spirit AeroSystems (SPR) and Raytheon Technologies (RTX). The other Buy-rated stocks of her include defense suppliers including Lockheed Martin (LMT).
Lwiag’s peers are coming around to her far more bullish view. More than 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 difficulty keeping up with the newest gains. The typical analyst price target for Boeing stock is just $236, under the $268 level which 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’s Plenty to Like About Aerospace Stocks, Including Boeing. Here is Why.