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 more and more optimistic about the prospects of the entire industry which includes beleaguered Boeing.
Friday evening, Morgan Stanley analyst Kristine Liwag moved her investment view regarding the aerospace industry to Attractive from Cautious. That’s 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 objective to $274 from $250 a share. Liwag indicates that there’s a “line of sight to a much healthier backdrop.” That is news which 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 fourteen, 87,534 individuals boarded planes in the U.S., as reported by data from the Transportation Security Administration, the lowest number during the pandemic and down an amazing 96 % year over year. The number has since risen. On Sunday, 1.3 million folks passed through TSA checkpoints.
Investors have already noticed everything is getting much better for the aerospace industry as well as broader traveling recovery. Boeing stock rose greater than 20 % this past week. Other travel related stocks have moved as well. American Airlines (AAL) shares, for instance, jumped fourteen % this past week. United Airlines (UAL) shares rose 11 %. Inventory in cruise operator Carnival (CCL) rose nine %.
Things, nevertheless, can still get better from here, Liwag noted. BoeingStock are down about 40 % from their all-time high. “From the chats of ours with investors, the [aerospace] class is still largely under owned,” had written the analyst. She sees Covid-19 vaccine rollouts and easing of cross-country travel restrictions as further catalysts that can drive sector stocks higher in the coming months.
Liwag rated Boeing shares Buy before publishing her updated industry view. Additional aerospace suppliers she recommends are actually Spirit AeroSystems (SPR) and Raytheon Technologies (RTX). Her other Buy-rated stocks include defense suppliers such as Lockheed Martin (LMT).
Lwiag’s peers are actually coming around to her more bullish view. Around 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 regular 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’s Plenty to Like About Aerospace Stocks, Including Boeing. Here is Why.