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’s for a complete sector.
She is also 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 healthier backdrop.” That’s great news for aerospace investors.
Air travel was decimated by the global pandemic, taking aerospace as well as traveling stocks down with it. On April 14, 87,534 individuals boarded planes in the U.S., based on information from the Transportation Security Administration, the lowest number during the pandemic and down an incredible 96 % year over year. The number has since risen. On Sunday, 1.3 million folks passed by TSA checkpoints.
Investors have noticed everything is getting better for the aerospace industry as well as broader traveling restoration. Boeing stock rose in excess of twenty % this past week. Other travel related stocks have moved as well. American Airlines (AAL) shares, for example, jumped 14 % this past week. United Airlines (UAL) shares rose 11 %. Stock in cruise operator Carnival (CCL) rose 9 %.
Items, nonetheless, can continue to get better from here, Liwag noted. BoeingStock are down aproximatelly forty % from their all time high. “From our chats with investors, the [aerospace] class is still largely under-owned,” wrote the analyst. She sees Covid 19 vaccine rollouts and easing of cross-country travel restrictions as further catalysts which can drive sector stocks higher in the coming months.
Liwag rated Boeing shares Buy before publishing her updated industry view. Additional aerospace suppliers she proposes 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 much more bullish view. Around fifty % of analysts covering BoeingStock rate them Buy. At the April 2020 travel-nadir, that number was less than forty %. FintechZoom analysts, however, are having trouble keeping up with the newest 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 about 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.