BoeingStock – There’s Plenty to Like About Aerospace Stocks, Including Boeing. Here is Why.
Wall Street is beginning to take notice of the aerospace sector’s recovery, growing progressively more 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 just like going to Buy from Hold on a stock, except it is for an entire sector.
She is also 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 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 individuals boarded planes in the U.S., based on data from the Transportation Security Administration, the lowest number during the pandemic and down an astounding ninety six % year over year. That number has since risen. On Sunday, 1.3 million individuals passed by TSA checkpoints.
Investors have noticed things are getting better for the aerospace industry as well as broader travel restoration. Boeing stock rose in excess of twenty % this past week. Other travel-related stocks have moved as well. American Airlines (AAL) shares, for instance, jumped 14 % this past week. United Airlines (UAL) shares rose 11 %. Stock 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 our chats with investors, the [aerospace] team is still largely under-owned,” posted 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 Spirit AeroSystems (SPR) as well as Raytheon Technologies (RTX). The various other Buy-rated stocks of her include defense suppliers like Lockheed Martin (LMT).
Lwiag’s peers are coming around to her more bullish view. More than fifty % of analysts covering BoeingStock rate them Buy. At the April 2020 travel nadir, that number was lower than 40 %. FintechZoom analysts, nevertheless, are having problems keeping up with recent gains. The average analyst price target for Boeing stock is only $236, below the $268 level that 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.