BoeingStock – There is 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 progressively more optimistic about the prospects of the whole industry which includes beleaguered Boeing.
Friday evening, Morgan Stanley analyst Kristine Liwag moved the funding view of her regarding the aerospace industry to Attractive from Cautious. That is like going to Buy from Hold on a stock, except it’s for a whole sector.
She is 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’s fantastic 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 individuals boarded planes in the U.S., as reported by information from the Transportation Security Administration, probably the lowest number during the pandemic and down an amazing 96 % year over year. That number has since risen. On Sunday, 1.3 million folks passed by TSA checkpoints.
Investors have noticed everything is getting much better for the aerospace industry as well as broader traveling recovery. Boeing stock rose greater than twenty % this past week. Other travel-related stocks have moved as well. American Airlines (AAL) shares, for instance, jumped 14 % this past week. United Airlines (UAL) shares rose 11 %. Inventory in cruise operator Carnival (CCL) rose nine %.
Items, nonetheless, can still get much better from here, Liwag noted. BoeingStock are down about 40 % from their all-time high. “From the conversations of ours with investors, the [aerospace] class is still largely under-owned,” had written 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. Other aerospace suppliers she recommends are Spirit AeroSystems (SPR) and Raytheon Technologies (RTX). The other Buy-rated stocks of her include defense suppliers such as Lockheed Martin (LMT).
Lwiag’s peers are actually coming around to her much more bullish view. More than 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 difficulty keeping up with the latest gains. The regular analyst price target for Boeing stock is only $236, below the $268 level that shares had been 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’s Plenty to Like About Aerospace Stocks, Including Boeing. Here is Why.