BoeingStock – There’s Plenty to Like About Aerospace Stocks, Including Boeing. Here’s Why.
Wall Street is actually beginning 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 her investment view about the aerospace industry to Attractive from Cautious. That’s like going to Buy from Hold on a stock, except it’s for a complete sector.
She’s also far more bullish on shares of Boeing (ticker: BA), raising her price goal to $274 from $250 a share. Liwag says there is a “line of sight to a much healthier backdrop.” That is news which is good for aerospace investors.
Air travel was decimated by the worldwide pandemic, taking aerospace as well as travel 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 amazing 96 % year over year. The number has since risen. On Sunday, 1.3 million people passed by TSA checkpoints.
Investors have already noticed everything is getting much better for the aerospace industry and broader travel restoration. Boeing stock rose more than 20 % this past week. Additional travel-related stocks have moved also. American Airlines (AAL) shares, for example, jumped fourteen % this past week. United Airlines (UAL) shares rose 11 %. Stock in cruise operator Carnival (CCL) rose 9 %.
Items, however, can still get better from here, Liwag noted. BoeingStock are down about forty % from their all time high. “From the chats of ours with investors, the [aerospace] class is still largely under-owned,” published the analyst. She sees Covid 19 vaccine rollouts and easing of cross-country travel restrictions as more 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 various other Buy rated stocks include defense suppliers like Lockheed Martin (LMT).
Lwiag’s peers are actually 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, nevertheless, are having problems keeping up with recent gains. The regular analyst price target for Boeing stock is just $236, below the $268 level that 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.