BoeingStock – There’s 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 which includes beleaguered Boeing.
Friday evening, Morgan Stanley analyst Kristine Liwag moved her investment view about the aerospace industry to Attractive from Cautious. That’s like going to Buy from Hold on a stock, besides it is for an entire sector.
She’s additionally 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 news that is good for aerospace investors.
Air travel was decimated by the worldwide pandemic, taking aerospace and travel stocks down with it. On April fourteen, 87,534 individuals boarded planes in the U.S., according to 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 through TSA checkpoints.
Investors have previously noticed things are getting better for the aerospace industry as well as broader travel restoration. Boeing stock rose in excess of 20 % this past week. Additional travel-related stocks have moved as well. American Airlines (AAL) shares, for instance, jumped 14 % this past week. United Airlines (UAL) shares rose 11 %. Inventory in cruise operator Carnival (CCL) rose nine %.
Items, nevertheless, can continue to get better from here, Liwag noted. BoeingStock are down aproximatelly forty % from their all time high. “From our chats with investors, the [aerospace] group is still largely under-owned,” posted 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 business view. Other aerospace suppliers she advises are Spirit AeroSystems (SPR) and Raytheon Technologies (RTX). Her various other Buy rated stocks include defense suppliers such as Lockheed Martin (LMT).
Lwiag’s peers are coming around to her far more bullish view. Over 50 % of analysts covering BoeingStock rate them Buy. At the April 2020 travel nadir, that number was lower than 40 %. FintechZoom analysts, however, are having problems keeping up with recent gains. The regular analyst price target for Boeing stock is only $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 somewhat.
BoeingStock – There is Plenty to Like About Aerospace Stocks, Including Boeing. Here’s Why.