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 whole industry which includes beleaguered Boeing.
Friday evening, Morgan Stanley analyst Kristine Liwag moved her funding view about the aerospace industry to Attractive from Cautious. That is like going to Buy from Hold on a stock, besides it is for a complete 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 is a “line of sight to a healthier backdrop.” That’s very good news 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., as reported by data from the Transportation Security Administration, the lowest number during the pandemic and down an amazing ninety six % year over year. The number has since risen. On Sunday, 1.3 million people passed by TSA checkpoints.
Investors have noticed everything is getting better for the aerospace industry and broader traveling restoration. Boeing stock rose in excess of 20 % this past week. Additional travel related stocks have moved also. American Airlines (AAL) shares, for instance, jumped fourteen % this past week. United Airlines (UAL) shares rose 11 %. Inventory in cruise operator Carnival (CCL) rose 9 %.
Items, however, can easily still get better from here, Liwag noted. BoeingStock are actually down aproximatelly forty % from their all-time high. “From the conversations of ours with investors, the [aerospace] group is still largely under owned,” wrote the analyst. She sees Covid-19 vaccine rollouts and easing of cross country travel restrictions as additional catalysts that can 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 actually Spirit AeroSystems (SPR) as well as Raytheon Technologies (RTX). The other Buy rated stocks of her include defense suppliers such as Lockheed Martin (LMT).
Lwiag’s peers are coming around to her far more bullish view. Over fifty % of analysts covering BoeingStock rate them Buy. At the April 2020 travel nadir, that number was under 40 %. FintechZoom analysts, nonetheless, are having trouble keeping up with the latest gains. The regular analyst price target for Boeing stock is only $236, below 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 is Plenty to Like About Aerospace Stocks, Including Boeing. Here’s Why.
