BoeingStock – There is 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 progressively more optimistic about the prospects of the entire industry including beleaguered Boeing.
Friday evening, Morgan Stanley analyst Kristine Liwag moved the investment view of her regarding the aerospace industry to Attractive from Cautious. That’s just like going to Buy from Hold on a stock, besides it is for a complete 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’s a “line of sight to a much healthier backdrop.” That is good news for aerospace investors.
Air travel was decimated by the global pandemic, taking aerospace as well as traveling stocks down with it. On April 14, 87,534 individuals boarded planes in the U.S., based on information 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 folks passed by TSA checkpoints.
Investors have previously noticed the situation is getting better for the aerospace industry and broader travel recovery. Boeing stock rose more than 20 % this past week. Additional travel related stocks have moved too. American Airlines (AAL) shares, for example, jumped fourteen % this past week. United Airlines (UAL) shares rose 11 %. Inventory in cruise operator Carnival (CCL) rose 9 %.
Things, however, can still get better from here, Liwag noted. BoeingStock are down about forty % from their all time high. “From our chats with investors, the [aerospace] group is still primarily under-owned,” had written the analyst. She sees Covid-19 vaccine rollouts and easing of cross country travel restrictions as further catalysts which can 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). The various other Buy rated stocks of her include defense suppliers including Lockheed Martin (LMT).
Lwiag’s peers are actually 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 40 %. FintechZoom analysts, however, are having trouble keeping up with the newest gains. The typical analyst price target for Boeing stock is only $236, under the $268 level which shares were 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 slightly.
BoeingStock – There’s Plenty to Like About Aerospace Stocks, Including Boeing. Here is Why.