BoeingStock – There’s Plenty to Like About Aerospace Stocks, Including Boeing. Here’s 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 which includes beleaguered Boeing.
Friday evening, Morgan Stanley analyst Kristine Liwag moved her funding view about the aerospace industry to Attractive from Cautious. That is like going to Buy from Hold on a stock, except it’s for a complete sector.
She’s additionally far 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 healthier backdrop.” That is news that is good for aerospace investors.
Air travel was decimated by the worldwide pandemic, taking aerospace as well as travel 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 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 already noticed the situation is getting much better for the aerospace industry as well as 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 instance, jumped 14 % this past week. United Airlines (UAL) shares rose 11 %. Stock in cruise operator Carnival (CCL) rose 9 %.
Things, nonetheless, can continue to get much better from here, Liwag noted. BoeingStock are actually down aproximatelly 40 % from their all-time high. “From our chats with investors, the [aerospace] group is still largely under-owned,” had written the analyst. She sees Covid 19 vaccine rollouts and easing of cross country travel restrictions as additional catalysts which will drive sector stocks higher in the coming months.
Liwag rated Boeing shares Buy before publishing her updated business view. Additional aerospace suppliers she advises are actually Spirit AeroSystems (SPR) and Raytheon Technologies (RTX). Her various other Buy-rated stocks include defense suppliers including Lockheed Martin (LMT).
Lwiag’s peers are coming around to her more bullish view. Over 50 % of analysts covering BoeingStock rate them Buy. At the April 2020 travel nadir, that number was under forty %. FintechZoom analysts, however, are having difficulty keeping up with the newest 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 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.