BoeingStock – There’s Plenty to Like About Aerospace Stocks, Including Boeing. Here’s Why.
Wall Street is actually starting to take notice of the aerospace sector’s recovery, growing progressively more optimistic about the prospects of the whole industry including beleaguered Boeing.
Friday evening, Morgan Stanley analyst Kristine Liwag moved the investment view of her about the aerospace industry to Attractive from Cautious. That is just like going to Buy from Hold on a stock, besides it’s for a whole sector.
She is also far more bullish on shares of Boeing (ticker: BA), raising her price goal to $274 from $250 a share. Liwag indicates that there’s a “line of sight to a healthier backdrop.” That’s news that 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 data from the Transportation Security Administration, the lowest number during the pandemic and down an incredible ninety six % year over year. The number has since risen. On Sunday, 1.3 million folks passed through TSA checkpoints.
Investors already have noticed everything is getting much better for the aerospace industry and broader traveling restoration. Boeing stock rose greater than 20 % this past week. Other travel related stocks have moved too. American Airlines (AAL) shares, for instance, jumped 14 % this past week. United Airlines (UAL) shares rose 11 %. Stock in cruise operator Carnival (CCL) rose nine %.
Things, however, can still get better from here, Liwag noted. BoeingStock are down about forty % from their all-time high. “From the chats of ours with investors, the [aerospace] team is still largely under owned,” posted the analyst. She sees Covid 19 vaccine rollouts and easing of cross-country travel restrictions as additional catalysts which will drive sector stocks higher in the coming months.
Liwag rated Boeing shares Buy before publishing her updated business view. Additional aerospace suppliers she suggests are Spirit AeroSystems (SPR) as well as Raytheon Technologies (RTX). The various other Buy-rated stocks of her include defense suppliers like Lockheed Martin (LMT).
Lwiag’s peers are actually coming around to her 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, nevertheless, are having problems keeping up with the newest gains. The regular analyst price target for Boeing stock is only $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 is Why.