BoeingStock – There’s Plenty to Like About Aerospace Stocks, Including Boeing. Here is Why.
Wall Street is starting to take notice of the aerospace sector’s recovery, growing progressively 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, besides it is for an entire 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’s news which is good for aerospace investors.
Air travel was decimated by the global pandemic, taking aerospace and travel stocks down with it. On April 14, 87,534 individuals boarded planes in the U.S., as reported by data from the Transportation Security Administration, probably the lowest number during the pandemic and down an incredible 96 % year over year. That number has since risen. On Sunday, 1.3 million folks passed by TSA checkpoints.
Investors have previously noticed things are getting better for the aerospace industry and broader traveling restoration. Boeing stock rose more than twenty % this past week. Additional travel related stocks have moved also. American Airlines (AAL) shares, for example, jumped 14 % this past week. United Airlines (UAL) shares rose 11 %. Stock in cruise operator Carnival (CCL) rose nine %.
Things, nevertheless, can continue to get much better from here, Liwag noted. BoeingStock are down about forty % from their all time high. “From our chats with investors, the [aerospace] team is still primarily under-owned,” wrote 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 business view. Other aerospace suppliers she advises are actually Spirit AeroSystems (SPR) and Raytheon Technologies (RTX). The various other Buy rated stocks of her include defense suppliers such as Lockheed Martin (LMT).
Lwiag’s peers are coming around to her much more bullish view. More than 50 % of analysts covering BoeingStock rate them Buy. At the April 2020 travel-nadir, that number was under forty %. FintechZoom analysts, nevertheless, are having difficulty keeping up with the newest gains. The typical analyst price target for Boeing stock is just $236, below the $268 level that 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 slightly.
BoeingStock – There’s Plenty to Like About Aerospace Stocks, Including Boeing. Here’s Why.