BoeingStock – There’s 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 more and more optimistic about the prospects of the entire industry which includes beleaguered Boeing.
Friday evening, Morgan Stanley analyst Kristine Liwag moved her funding 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 is also far 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 global pandemic, taking aerospace as well as travel stocks down with it. On April 14, 87,534 people boarded planes in the U.S., as reported by information from the Transportation Security Administration, 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 through TSA checkpoints.
Investors have previously noticed things are getting better for the aerospace industry and broader travel restoration. Boeing stock rose greater than twenty % this past week. Additional travel related stocks have moved too. American Airlines (AAL) shares, for example, jumped fourteen % this past week. United Airlines (UAL) shares rose 11 %. Stock in cruise operator Carnival (CCL) rose nine %.
Items, nonetheless, can easily still get much better from here, Liwag noted. BoeingStock are down aproximatelly 40 % from their all time high. “From the conversations of ours with investors, the [aerospace] team is still primarily under-owned,” had written the analyst. She sees Covid-19 vaccine rollouts and easing of cross-country travel restrictions as more catalysts which will drive sector stocks higher in the coming months.
Liwag rated Boeing shares Buy before publishing her updated business view. Other aerospace suppliers she proposes are actually Spirit AeroSystems (SPR) and Raytheon Technologies (RTX). Her other Buy rated stocks include defense suppliers such as Lockheed Martin (LMT).
Lwiag’s peers are actually coming around to her far more bullish view. Over fifty % of analysts covering BoeingStock rate them Buy. At the April 2020 travel-nadir, that number was lower than 40 %. FintechZoom analysts, however, are having problems keeping up with the latest gains. The typical analyst price target for Boeing stock is only $236, below the $268 level which shares had been 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 is Plenty to Like About Aerospace Stocks, Including Boeing. Here is Why.