BoeingStock – There is Plenty to Like About Aerospace Stocks, Including Boeing. Here’s Why.
Wall Street is beginning to take notice of the aerospace sector’s recovery, growing progressively more optimistic about the prospects of the entire industry including 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, besides it’s for a whole sector.
She’s also more bullish on shares of Boeing (ticker: BA), raising her price objective to $274 from $250 a share. Liwag indicates that there’s a “line of sight to a much healthier backdrop.” That’s news which is good for aerospace investors.
Air travel was decimated by the global pandemic, taking aerospace as well as travel stocks down with it. On April fourteen, 87,534 individuals boarded planes in the U.S., as reported by details from the Transportation Security Administration, the lowest number during the pandemic and down an astounding ninety six % year over year. The number has since risen. On Sunday, 1.3 million individuals passed by TSA checkpoints.
Investors have previously noticed everything is getting much better for the aerospace industry as well as broader traveling restoration. Boeing stock rose in excess of twenty % 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, nevertheless, can continue to get better from here, Liwag noted. BoeingStock are down about 40 % from their all time high. “From the chats of ours with investors, the [aerospace] team is still primarily under owned,” posted 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 recommends are actually Spirit AeroSystems (SPR) and Raytheon Technologies (RTX). Her other Buy-rated stocks include defense suppliers including Lockheed Martin (LMT).
Lwiag’s peers are coming around to her 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 average analyst price target for Boeing stock is just $236, below the $268 level which shares were 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’s Why.