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 increasingly optimistic about the prospects of the whole industry which includes beleaguered Boeing.
Friday evening, Morgan Stanley analyst Kristine Liwag moved her investment view about 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 global pandemic, taking aerospace and travel stocks down with it. On April fourteen, 87,534 individuals boarded planes in the U.S., according to information from the Transportation Security Administration, probably the lowest number throughout the pandemic and down an astounding 96 % year over year. That 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 restoration. Boeing stock rose in excess of 20 % this past week. Other travel related stocks have moved as well. 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 %.
Things, nevertheless, can easily still get better from here, Liwag noted. BoeingStock are actually down about 40 % from their all time high. “From our conversations 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 more catalysts which will drive sector stocks higher in the coming months.
Liwag rated Boeing shares Buy before publishing her updated industry view. Other aerospace suppliers she suggests are actually Spirit AeroSystems (SPR) and Raytheon Technologies (RTX). The other Buy-rated stocks of her include defense suppliers including Lockheed Martin (LMT).
Lwiag’s peers are actually coming around to her more bullish view. Over fifty % of analysts covering BoeingStock rate them Buy. At the April 2020 travel nadir, that number was less than forty %. FintechZoom analysts, nonetheless, are having difficulty keeping up with the newest gains. The average analyst price target for Boeing stock is just $236, below the $268 level that shares had been 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 somewhat.
BoeingStock – There is Plenty to Like About Aerospace Stocks, Including Boeing. Here’s Why.