BoeingStock – There is Plenty to Like About Aerospace Stocks, Including Boeing. Here is 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 regarding the aerospace industry to Attractive from Cautious. That’s like going to Buy from Hold on a stock, besides it is for a whole sector.
She is additionally far more bullish on shares of Boeing (ticker: BA), raising her price target to $274 from $250 a share. Liwag says there is a “line of sight to a much 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 14, 87,534 individuals boarded planes in the U.S., based on information from the Transportation Security Administration, probably the lowest number throughout the pandemic and down an amazing ninety six % year over year. The number has since risen. On Sunday, 1.3 million individuals passed through TSA checkpoints.
Investors have already noticed the situation is getting better for the aerospace industry as well as broader traveling recovery. Boeing stock rose more than twenty % this past week. Additional travel-related stocks have moved also. American Airlines (AAL) shares, for example, jumped 14 % this past week. United Airlines (UAL) shares rose 11 %. Stock in cruise operator Carnival (CCL) rose nine %.
Items, nonetheless, can still get much better from here, Liwag noted. BoeingStock are actually down about forty % from their all time high. “From the chats of ours with investors, the [aerospace] group 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 Spirit AeroSystems (SPR) and Raytheon Technologies (RTX). The various 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 fifty % of analysts covering BoeingStock rate them Buy. At the April 2020 travel-nadir, that number was less than 40 %. FintechZoom analysts, however, are having problems 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 slightly.
BoeingStock – There is Plenty to Like About Aerospace Stocks, Including Boeing. Here’s Why.