BoeingStock – There is Plenty to Like About Aerospace Stocks, Including Boeing. Here\’s Why.
BoeingStock – There is Plenty to Like About Aerospace Stocks, Including Boeing. Here is Why.
Wall Street is beginning to take notice of the aerospace sector’s recovery, growing increasingly optimistic about the prospects of the entire industry including beleaguered Boeing.
Friday evening, Morgan Stanley analyst Kristine Liwag moved the investment view of her regarding the aerospace industry to Attractive from Cautious. That’s like going to Buy from Hold on a stock, except it’s for a complete sector.
She is additionally 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 healthier backdrop.” That’s news which is good for aerospace investors.
Air travel was decimated by the global 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 details from the Transportation Security Administration, probably the lowest number throughout the pandemic and down an incredible ninety six % year over year. The number has since risen. On Sunday, 1.3 million people passed through TSA checkpoints.
Investors have already noticed the situation is getting much better for the aerospace industry and broader traveling restoration. Boeing stock rose greater than twenty % this past week. Other travel-related stocks have moved also. American Airlines (AAL) shares, for instance, jumped 14 % this past week. United Airlines (UAL) shares rose 11 %. Stock in cruise operator Carnival (CCL) rose 9 %.
Things, nonetheless, can still get much better from here, Liwag noted. BoeingStock are down about forty % from their all time high. “From the conversations of ours with investors, the [aerospace] group is still largely under owned,” posted the analyst. She sees Covid 19 vaccine rollouts and easing of cross-country travel restrictions as further catalysts which will drive sector stocks higher in the coming months.
Liwag rated Boeing shares Buy before publishing her updated industry view. Additional aerospace suppliers she suggests are Spirit AeroSystems (SPR) and Raytheon Technologies (RTX). The other Buy rated stocks of her include defense suppliers including Lockheed Martin (LMT).
Lwiag’s peers are coming around to her far more bullish view. More than 50 % of analysts covering BoeingStock rate them Buy. At the April 2020 travel-nadir, that number was lower than 40 %. FintechZoom analysts, however, are having trouble keeping up with the latest gains. The average analyst price target for Boeing stock is just $236, under 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 slightly.
BoeingStock – There is Plenty to Like About Aerospace Stocks, Including Boeing. Here’s Why.