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 which includes beleaguered Boeing.
Friday evening, Morgan Stanley analyst Kristine Liwag moved her investment view regarding the aerospace industry to Attractive from Cautious. That is just like going to Buy from Hold on a stock, besides it’s for a complete sector.
She is also more bullish on shares of Boeing (ticker: BA), raising her price target to $274 from $250 a share. Liwag indicates that there is a “line of sight to a much healthier backdrop.” That is great news for aerospace investors.
Air travel was decimated by the worldwide pandemic, taking aerospace and travel stocks down with it. On April 14, 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 astounding 96 % year over year. The number has since risen. On Sunday, 1.3 million folks passed by TSA checkpoints.
Investors already have noticed everything is getting much better for the aerospace industry as well as broader travel restoration. Boeing stock rose greater than 20 % this past week. Additional travel related stocks have moved as well. American Airlines (AAL) shares, for example, jumped 14 % this past week. United Airlines (UAL) shares rose 11 %. Inventory in cruise operator Carnival (CCL) rose 9 %.
Things, however, can continue to get better from here, Liwag noted. BoeingStock are down about 40 % from their all-time high. “From the conversations of ours with investors, the [aerospace] team is still primarily under owned,” published the analyst. She sees Covid-19 vaccine rollouts and easing of cross country travel restrictions as additional 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 advises are Spirit AeroSystems (SPR) as well as Raytheon Technologies (RTX). The other Buy-rated stocks of her include defense suppliers including Lockheed Martin (LMT).
Lwiag’s peers are actually coming around to her far more bullish view. More than fifty % of analysts covering BoeingStock rate them Buy. At the April 2020 travel nadir, that number was under forty %. FintechZoom analysts, nonetheless, are having difficulty keeping up with the newest gains. The typical analyst price target for Boeing stock is just $236, under 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 is Plenty to Like About Aerospace Stocks, Including Boeing. Here’s Why.