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 increasingly optimistic about the prospects of the entire industry including beleaguered Boeing.
Friday evening, Morgan Stanley analyst Kristine Liwag moved the investment view of her about the aerospace industry to Attractive from Cautious. That’s just like going to Buy from Hold on a stock, besides it’s for a whole sector.
She’s also more bullish on shares of Boeing (ticker: BA), raising her price target to $274 from $250 a share. Liwag indicates that there is a “line of sight to a healthier backdrop.” That is news which is good for aerospace investors.
Air travel was decimated by the worldwide pandemic, taking aerospace and traveling 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 throughout the pandemic and down an amazing ninety six % year over year. That 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 restoration. Boeing stock rose greater than 20 % this past week. Other travel related stocks have moved as well. American Airlines (AAL) shares, for example, jumped fourteen % this past week. United Airlines (UAL) shares rose 11 %. Inventory in cruise operator Carnival (CCL) rose nine %.
Items, nevertheless, can continue to get better from here, Liwag noted. BoeingStock are actually down aproximatelly 40 % from their all time high. “From our conversations 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. Additional aerospace suppliers she suggests are Spirit AeroSystems (SPR) as well as Raytheon Technologies (RTX). Her other Buy rated stocks include defense suppliers including Lockheed Martin (LMT).
Lwiag’s peers are coming around to her more bullish view. Around fifty % of analysts covering BoeingStock rate them Buy. At the April 2020 travel nadir, that number was lower than forty %. FintechZoom analysts, however, are having difficulty keeping up with the latest gains. The regular analyst price target for Boeing stock is only $236, below the $268 level that shares had been 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 slightly.
BoeingStock – There’s Plenty to Like About Aerospace Stocks, Including Boeing. Here’s Why.