BoeingStock – There is Plenty to Like About Aerospace Stocks, Including Boeing. Here is Why.
Wall Street is actually starting 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 her investment view about the aerospace industry to Attractive from Cautious. That’s just like going to Buy from Hold on a stock, except it’s for a whole sector.
She’s 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 news which is good for aerospace investors.
Air travel was decimated by the global pandemic, taking aerospace and travel stocks down with it. On April fourteen, 87,534 individuals boarded planes in the U.S., based on data from the Transportation Security Administration, the lowest number during 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 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 as well. American Airlines (AAL) shares, for example, 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 forty % from their all-time high. “From the conversations of ours with investors, the [aerospace] class 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 which will drive sector stocks higher in the coming months.
Liwag rated Boeing shares Buy before publishing her updated business view. Other aerospace suppliers she recommends are actually Spirit AeroSystems (SPR) and Raytheon Technologies (RTX). Her various other Buy rated stocks include defense suppliers like 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 lower than 40 %. FintechZoom analysts, nonetheless, are having problems keeping up with the newest gains. The regular analyst price target for Boeing stock is just $236, below the $268 level that 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’s Why.