BoeingStock – There is Plenty to Like About Aerospace Stocks, Including Boeing. Here’s 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 entire industry including beleaguered Boeing.
Friday evening, Morgan Stanley analyst Kristine Liwag moved the investment view of her about the aerospace industry to Attractive from Cautious. That is just like going to Buy from Hold on a stock, except it’s for an entire sector.
She’s also more bullish on shares of Boeing (ticker: BA), raising her price goal to $274 from $250 a share. Liwag indicates that there’s a “line of sight to a healthier backdrop.” That’s news which is good for aerospace investors.
Air travel was decimated by the worldwide pandemic, taking aerospace as well as traveling stocks down with it. On April 14, 87,534 people boarded planes in the U.S., based on data from the Transportation Security Administration, probably the lowest number during the pandemic and down an astounding ninety six % year over year. The number has since risen. On Sunday, 1.3 million individuals passed by TSA checkpoints.
Investors already have noticed things are getting better for the aerospace industry as well as broader travel recovery. Boeing stock rose greater than 20 % this past week. Other 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, nonetheless, can continue to get better from here, Liwag noted. BoeingStock are down about forty % from their all time high. “From our chats with investors, the [aerospace] team is still largely under-owned,” had written 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. Other aerospace suppliers she recommends are actually Spirit AeroSystems (SPR) as well as Raytheon Technologies (RTX). Her other Buy rated stocks include defense suppliers like 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 lower than 40 %. FintechZoom analysts, nonetheless, are having problems keeping up with the latest gains. The regular 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 somewhat.
BoeingStock – There’s Plenty to Like About Aerospace Stocks, Including Boeing. Here’s Why.