BoeingStock – There is Plenty to Like About Aerospace Stocks, Including Boeing. Here is Why.
Wall Street is beginning to take notice of the aerospace sector’s recovery, growing increasingly optimistic about the prospects of the whole industry including beleaguered Boeing.
Friday evening, Morgan Stanley analyst Kristine Liwag moved her investment view regarding the aerospace industry to Attractive from Cautious. That is like going to Buy from Hold on a stock, except it is for a complete 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’s a “line of sight to a healthier backdrop.” That is good news for aerospace investors.
Air travel was decimated by the worldwide pandemic, taking aerospace and traveling stocks down with it. On April fourteen, 87,534 individuals boarded planes in the U.S., according to details from the Transportation Security Administration, the lowest number during 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 noticed the situation is getting better for the aerospace industry and broader traveling restoration. Boeing stock rose in excess of 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 9 %.
Things, nevertheless, can still get much better from here, Liwag noted. BoeingStock are down aproximatelly 40 % from their all time high. “From our chats with investors, the [aerospace] group is still primarily under owned,” posted the analyst. She sees Covid 19 vaccine rollouts and easing of cross-country travel restrictions as additional catalysts which can drive sector stocks higher in the coming months.
Liwag rated Boeing shares Buy before publishing her updated industry view. Other aerospace suppliers she recommends 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 much more bullish view. More than 50 % of analysts covering BoeingStock rate them Buy. At the April 2020 travel nadir, that number was lower than 40 %. FintechZoom analysts, nonetheless, are having problems keeping up with the newest gains. The average 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 is Plenty to Like About Aerospace Stocks, Including Boeing. Here’s Why.