BoeingStock – There’s Plenty to Like About Aerospace Stocks, Including Boeing. Here is Why.
Wall Street is actually starting to take notice of the aerospace sector’s recovery, growing more and more 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’s like going to Buy from Hold on a stock, except it’s for a whole sector.
She’s 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 much healthier backdrop.” That is great 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., based on data from the Transportation Security Administration, the lowest number throughout the pandemic and down an incredible 96 % year over year. That number has since risen. On Sunday, 1.3 million individuals passed through TSA checkpoints.
Investors have noticed things are getting better for the aerospace industry as well as broader traveling restoration. Boeing stock rose in excess of twenty % this past week. Additional travel-related stocks have moved as well. American Airlines (AAL) shares, for instance, jumped fourteen % this past week. United Airlines (UAL) shares rose 11 %. Stock in cruise operator Carnival (CCL) rose nine %.
Things, nevertheless, can continue to get better from here, Liwag noted. BoeingStock are down aproximatelly forty % from their all-time high. “From our conversations with investors, the [aerospace] class 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 recommends are Spirit AeroSystems (SPR) and Raytheon Technologies (RTX). The various other Buy-rated stocks of her include defense suppliers like Lockheed Martin (LMT).
Lwiag’s peers are coming around to her much more bullish view. Over 50 % of analysts covering BoeingStock rate them Buy. At the April 2020 travel nadir, that number was under forty %. FintechZoom analysts, nevertheless, are having problems keeping up with the newest gains. The typical analyst price target for Boeing stock is just $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.