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 progressively more optimistic about the prospects of the whole industry including beleaguered Boeing.
Friday evening, Morgan Stanley analyst Kristine Liwag moved her funding view about the aerospace industry to Attractive from Cautious. That is just like going to Buy from Hold on a stock, besides it’s for a whole sector.
She’s also far more bullish on shares of Boeing (ticker: BA), raising her price objective to $274 from $250 a share. Liwag says there is a “line of sight to a healthier backdrop.” That is news which is good 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 people boarded planes in the U.S., according to information from the Transportation Security Administration, probably the lowest number throughout the pandemic and down an incredible ninety six % year over year. The number has since risen. On Sunday, 1.3 million folks passed by TSA checkpoints.
Investors have already noticed everything is getting better for the aerospace industry and broader traveling restoration. Boeing stock rose greater than 20 % this past week. Additional travel-related stocks have moved also. 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, however, can still get much better from here, Liwag noted. BoeingStock are actually down about 40 % from their all-time high. “From our chats with investors, the [aerospace] class is still largely under owned,” wrote the analyst. She sees Covid-19 vaccine rollouts and easing of cross country travel restrictions as further catalysts which can drive sector stocks higher in the coming months.
Liwag rated Boeing shares Buy before publishing her updated industry view. Additional aerospace suppliers she proposes are Spirit AeroSystems (SPR) as well as 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 more bullish view. Around 50 % of analysts covering BoeingStock rate them Buy. At the April 2020 travel nadir, that number was under forty %. FintechZoom analysts, however, are having difficulty keeping up with recent gains. The regular 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’s Plenty to Like About Aerospace Stocks, Including Boeing. Here is Why.