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 increasingly optimistic about the prospects of the entire industry including beleaguered Boeing.
Friday evening, Morgan Stanley analyst Kristine Liwag moved her funding view regarding the aerospace industry to Attractive from Cautious. That is just like going to Buy from Hold on a stock, except 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 is good news for aerospace investors.
Air travel was decimated by the global pandemic, taking aerospace and traveling stocks down with it. On April fourteen, 87,534 people boarded planes in the U.S., according to details from the Transportation Security Administration, the lowest number during the pandemic and down an astounding 96 % year over year. That number has since risen. On Sunday, 1.3 million individuals passed by TSA checkpoints.
Investors have already noticed everything is getting better for the aerospace industry and broader traveling restoration. Boeing stock rose greater than twenty % this past week. Other travel related stocks have moved too. 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 %.
Items, however, can still get much better from here, Liwag noted. BoeingStock are actually down about 40 % from their all time high. “From our conversations with investors, the [aerospace] group is still primarily under owned,” wrote the analyst. She sees Covid 19 vaccine rollouts and easing of cross-country travel restrictions as more 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 advises are Spirit AeroSystems (SPR) as well as Raytheon Technologies (RTX). The other Buy-rated stocks of her include defense suppliers such as Lockheed Martin (LMT).
Lwiag’s peers are coming around to her 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, nevertheless, are having difficulty keeping up with the latest gains. The typical 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 slightly.
BoeingStock – There is Plenty to Like About Aerospace Stocks, Including Boeing. Here is Why.