BoeingStock – There is Plenty to Like About Aerospace Stocks, Including Boeing. Heres Why.
BoeingStock – There’s Plenty to Like About Aerospace Stocks, Including Boeing. Here is Why.
Wall Street is starting to take notice of the aerospace sector’s recovery, growing progressively more optimistic about the prospects of the entire industry including beleaguered Boeing.
Friday evening, Morgan Stanley analyst Kristine Liwag moved her funding view regarding the aerospace industry to Attractive from Cautious. That’s like going to Buy from Hold on a stock, except it is for a whole sector.
She’s also far more bullish on shares of Boeing (ticker: BA), raising her price target to $274 from $250 a share. Liwag says there is 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., as reported by data from the Transportation Security Administration, the lowest number during the pandemic and down an astounding ninety six % year over year. That number has since risen. On Sunday, 1.3 million individuals passed by TSA checkpoints.
Investors already have noticed things are getting much better for the aerospace industry and 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 instance, jumped fourteen % this past week. United Airlines (UAL) shares rose 11 %. Stock in cruise operator Carnival (CCL) rose 9 %.
Items, however, can continue to get better from here, Liwag noted. BoeingStock are actually down aproximatelly 40 % from their all time high. “From the conversations of ours with investors, the [aerospace] group is still primarily under-owned,” published the analyst. She sees Covid-19 vaccine rollouts and easing of cross-country travel restrictions as further catalysts that can drive sector stocks higher in the coming months.
Liwag rated Boeing shares Buy before publishing her updated industry view. Additional aerospace suppliers she proposes are actually Spirit AeroSystems (SPR) and Raytheon Technologies (RTX). The various 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 less than forty %. FintechZoom analysts, nevertheless, are having difficulty keeping up with the latest gains. The average analyst price target for Boeing stock is just $236, below 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’s Plenty to Like About Aerospace Stocks, Including Boeing. Here’s Why.