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 increasingly optimistic about the prospects of the entire industry including beleaguered Boeing.
Friday evening, Morgan Stanley analyst Kristine Liwag moved the investment view of her regarding the aerospace industry to Attractive from Cautious. That’s just like going to Buy from Hold on a stock, besides it is for a whole sector.
She is additionally more bullish on shares of Boeing (ticker: BA), raising her price objective to $274 from $250 a share. Liwag says 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 as well as traveling stocks down with it. On April 14, 87,534 individuals boarded planes in the U.S., according to data from the Transportation Security Administration, the lowest number throughout the pandemic and down an amazing ninety six % year over year. That number has since risen. On Sunday, 1.3 million people passed through TSA checkpoints.
Investors already have noticed things are getting much better for the aerospace industry and broader traveling restoration. Boeing stock rose more than twenty % this past week. Other travel-related stocks have moved too. American Airlines (AAL) shares, for example, jumped 14 % this past week. United Airlines (UAL) shares rose 11 %. Inventory in cruise operator Carnival (CCL) rose 9 %.
Items, nonetheless, 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 largely under owned,” posted the analyst. She sees Covid 19 vaccine rollouts and easing of cross-country travel restrictions as further catalysts that can drive sector stocks higher in the coming months.
Liwag rated Boeing shares Buy before publishing her updated business view. Other aerospace suppliers she suggests are actually Spirit AeroSystems (SPR) as well as Raytheon Technologies (RTX). Her other Buy rated stocks include defense suppliers such as Lockheed Martin (LMT).
Lwiag’s peers are actually coming around to her far more bullish view. More than fifty % of analysts covering BoeingStock rate them Buy. At the April 2020 travel nadir, that number was lower than forty %. FintechZoom analysts, however, are having trouble keeping up with recent gains. The regular analyst price target for Boeing stock is just $236, below the $268 level which shares were 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’s Plenty to Like About Aerospace Stocks, Including Boeing. Here is Why.