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 progressively more optimistic about the prospects of the whole industry including beleaguered Boeing.
Friday evening, Morgan Stanley analyst Kristine Liwag moved the funding view of her regarding the aerospace industry to Attractive from Cautious. That is like going to Buy from Hold on a stock, except it is for a complete sector.
She’s also more bullish on shares of Boeing (ticker: BA), raising her price goal to $274 from $250 a share. Liwag indicates that there’s a “line of sight to a much healthier backdrop.” That’s news that is good 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 ninety six % year over year. The number has since risen. On Sunday, 1.3 million individuals passed by TSA checkpoints.
Investors already have noticed the situation is getting better for the aerospace industry and broader traveling recovery. Boeing stock rose in excess of twenty % this past week. Additional travel-related stocks have moved too. American Airlines (AAL) shares, for example, jumped fourteen % this past week. United Airlines (UAL) shares rose 11 %. Inventory in cruise operator Carnival (CCL) rose 9 %.
Items, however, can continue to get much better from here, Liwag noted. BoeingStock are actually down about 40 % from their all time high. “From the chats of ours with investors, the [aerospace] group is still primarily under owned,” had written the analyst. She sees Covid-19 vaccine rollouts and easing of cross-country travel restrictions as further catalysts which will drive sector stocks higher in the coming months.
Liwag rated Boeing shares Buy before publishing her updated business view. Other aerospace suppliers she proposes are actually Spirit AeroSystems (SPR) and Raytheon Technologies (RTX). Her various other Buy-rated stocks include defense suppliers like 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 less than 40 %. FintechZoom analysts, however, are having difficulty keeping up with the latest gains. The average analyst price target for Boeing stock is just $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 is Why.