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 which includes beleaguered Boeing.
Friday evening, Morgan Stanley analyst Kristine Liwag moved the funding view of her regarding the aerospace industry to Attractive from Cautious. That is just like going to Buy from Hold on a stock, besides it is for a complete sector.
She is also far more bullish on shares of Boeing (ticker: BA), raising her price objective to $274 from $250 a share. Liwag says 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 and travel stocks down with it. On April 14, 87,534 individuals 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. That number has since risen. On Sunday, 1.3 million folks passed by TSA checkpoints.
Investors have noticed the situation is getting better for the aerospace industry and broader traveling restoration. Boeing stock rose more than twenty % this past week. Other travel related stocks have moved also. American Airlines (AAL) shares, for example, jumped 14 % 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 down aproximatelly forty % from their all time high. “From our chats with investors, the [aerospace] team is still largely under owned,” wrote 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. Additional aerospace suppliers she recommends are actually Spirit AeroSystems (SPR) and Raytheon Technologies (RTX). The other Buy rated stocks of her include defense suppliers like Lockheed Martin (LMT).
Lwiag’s peers are coming around to her far more bullish view. Over fifty % 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 the latest gains. The regular analyst price target for Boeing stock is only $236, below the $268 level which shares had been 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 somewhat.
BoeingStock – There is Plenty to Like About Aerospace Stocks, Including Boeing. Here is Why.