BoeingStock – There is Plenty to Like About Aerospace Stocks, Including Boeing. Here is Why.
Wall Street is beginning to take notice of the aerospace sector’s recovery, growing more and more optimistic about the prospects of the entire industry including beleaguered Boeing.
Friday evening, Morgan Stanley analyst Kristine Liwag moved her funding view regarding 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 is also far more bullish on shares of Boeing (ticker: BA), raising her price goal to $274 from $250 a share. Liwag says there’s a “line of sight to a healthier backdrop.” That’s great news for aerospace investors.
Air travel was decimated by the global pandemic, taking aerospace and traveling stocks down with it. On April 14, 87,534 individuals boarded planes in the U.S., according to details 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 previously noticed things are getting better for the aerospace industry and broader travel restoration. Boeing stock rose more than 20 % this past week. Other 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 nine %.
Things, nonetheless, can easily still get better from here, Liwag noted. BoeingStock are actually down aproximatelly 40 % from their all-time high. “From our conversations with investors, the [aerospace] class is still primarily under owned,” published the analyst. She sees Covid-19 vaccine rollouts and easing of cross-country travel restrictions as additional catalysts that can drive sector stocks higher in the coming months.
Liwag rated Boeing shares Buy before publishing her updated industry 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 like Lockheed Martin (LMT).
Lwiag’s peers are coming around to her much more bullish view. More than 50 % of analysts covering BoeingStock rate them Buy. At the April 2020 travel nadir, that number was under 40 %. FintechZoom analysts, nonetheless, are having trouble keeping up with recent gains. The regular analyst price target for Boeing stock is only $236, below 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.
