BoeingStock – There’s Plenty to Like About Aerospace Stocks, Including Boeing. Here is Why.
Wall Street is actually beginning to take notice of the aerospace sector’s recovery, growing more and more optimistic about the prospects of the whole industry including beleaguered Boeing.
Friday evening, Morgan Stanley analyst Kristine Liwag moved the funding view of her about the aerospace industry to Attractive from Cautious. That is just like going to Buy from Hold on a stock, except it is for an entire sector.
She is additionally more bullish on shares of Boeing (ticker: BA), raising her price target to $274 from $250 a share. Liwag indicates that there’s a “line of sight to a much healthier backdrop.” That’s very good news for aerospace investors.
Air travel was decimated by the worldwide pandemic, taking aerospace and traveling stocks down with it. On April 14, 87,534 people boarded planes in the U.S., according to information from the Transportation Security Administration, the lowest number throughout the pandemic and down an astounding 96 % year over year. The number has since risen. On Sunday, 1.3 million individuals passed through TSA checkpoints.
Investors have already noticed the situation is getting better for the aerospace industry as well as broader travel restoration. Boeing stock rose greater than twenty % this past week. Additional travel-related stocks have moved too. American Airlines (AAL) shares, for instance, jumped 14 % this past week. United Airlines (UAL) shares rose 11 %. Stock in cruise operator Carnival (CCL) rose 9 %.
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] group is still primarily under-owned,” posted the analyst. She sees Covid 19 vaccine rollouts and easing of cross-country travel restrictions as additional 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 proposes are actually Spirit AeroSystems (SPR) and Raytheon Technologies (RTX). The other Buy rated stocks of her include defense suppliers including Lockheed Martin (LMT).
Lwiag’s peers are coming around to her much more bullish view. More than fifty % of analysts covering BoeingStock rate them Buy. At the April 2020 travel-nadir, that number was less than 40 %. FintechZoom analysts, nevertheless, are having problems keeping up with recent gains. The average 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 slightly.
BoeingStock – There’s Plenty to Like About Aerospace Stocks, Including Boeing. Here’s Why.