BoeingStock – There’s Plenty to Like About Aerospace Stocks, Including Boeing. Here’s Why.
Wall Street is actually beginning 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 the funding view of her regarding the aerospace industry to Attractive from Cautious. That is just like going to Buy from Hold on a stock, except it’s for a whole 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 very good news for aerospace investors.
Air travel was decimated by the worldwide pandemic, taking aerospace as well as travel stocks down with it. On April 14, 87,534 individuals boarded planes in the U.S., according to data from the Transportation Security Administration, probably the lowest number during 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 already have noticed everything is getting much better for the aerospace industry and broader traveling restoration. Boeing stock rose greater than 20 % this past week. Other travel-related stocks have moved as well. American Airlines (AAL) shares, for example, jumped 14 % this past week. United Airlines (UAL) shares rose 11 %. Stock in cruise operator Carnival (CCL) rose 9 %.
Items, however, can continue to get better from here, Liwag noted. BoeingStock are down about 40 % from their all time high. “From the conversations of ours with investors, the [aerospace] team 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 that can drive sector stocks higher in the coming months.
Liwag rated Boeing shares Buy before publishing her updated industry view. Additional aerospace suppliers she suggests are actually Spirit AeroSystems (SPR) and Raytheon Technologies (RTX). The other Buy-rated stocks of her include defense suppliers such as Lockheed Martin (LMT).
Lwiag’s peers are actually coming around to her far more bullish view. Around fifty % of analysts covering BoeingStock rate them Buy. At the April 2020 travel-nadir, that number was under forty %. FintechZoom analysts, nonetheless, are having difficulty keeping up with recent gains. The typical analyst price target for Boeing stock is only $236, below the $268 level which 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 slightly.
BoeingStock – There is Plenty to Like About Aerospace Stocks, Including Boeing. Here is Why.