BoeingStock – There’s Plenty to Like About Aerospace Stocks, Including Boeing. Here’s Why.
Wall Street is actually 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 the investment view of her regarding the aerospace industry to Attractive from Cautious. That is like going to Buy from Hold on a stock, except it’s for an entire sector.
She’s additionally far more bullish on shares of Boeing (ticker: BA), raising her price goal to $274 from $250 a share. Liwag indicates that there is a “line of sight to a much healthier backdrop.” That’s good news for aerospace investors.
Air travel was decimated by the global pandemic, taking aerospace as well as traveling stocks down with it. On April 14, 87,534 individuals boarded planes in the U.S., as reported by details from the Transportation Security Administration, probably the lowest number throughout the pandemic and down an amazing ninety six % year over year. That 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 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 fourteen % this past week. United Airlines (UAL) shares rose 11 %. Stock in cruise operator Carnival (CCL) rose nine %.
Items, however, can still get better from here, Liwag noted. BoeingStock are actually down about forty % from their all-time high. “From our conversations with investors, the [aerospace] class is still primarily under-owned,” wrote 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 industry view. Additional aerospace suppliers she recommends are Spirit AeroSystems (SPR) and Raytheon Technologies (RTX). Her other Buy-rated stocks include defense suppliers including Lockheed Martin (LMT).
Lwiag’s peers are actually coming around to her more bullish view. Around 50 % of analysts covering BoeingStock rate them Buy. At the April 2020 travel-nadir, that number was under 40 %. FintechZoom analysts, nonetheless, are having difficulty keeping up with the newest 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’s Plenty to Like About Aerospace Stocks, Including Boeing. Here is Why.