BoeingStock – There’s Plenty to Like About Aerospace Stocks, Including Boeing. Here is Why.
Wall Street is actually 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 her funding view regarding the aerospace industry to Attractive from Cautious. That is like going to Buy from Hold on a stock, except it’s for an entire sector.
She’s also 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 much healthier backdrop.” That’s good news for aerospace investors.
Air travel was decimated by the worldwide pandemic, taking aerospace as well as travel stocks down with it. On April 14, 87,534 individuals boarded planes in the U.S., as reported by details from the Transportation Security Administration, the lowest number during the pandemic and down an astounding ninety six % year over year. The number has since risen. On Sunday, 1.3 million people passed through TSA checkpoints.
Investors already have noticed things are getting better for the aerospace industry as well as broader traveling restoration. Boeing stock rose in excess of 20 % this past week. Additional travel-related stocks have moved as well. 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, nevertheless, can easily still get much better from here, Liwag noted. BoeingStock are actually down about 40 % from their all time high. “From the conversations of ours with investors, the [aerospace] team is still largely under-owned,” wrote 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 advises are Spirit AeroSystems (SPR) as well as Raytheon Technologies (RTX). Her other Buy-rated stocks include defense suppliers like Lockheed Martin (LMT).
Lwiag’s peers are coming around to her more bullish view. Around 50 % of analysts covering BoeingStock rate them Buy. At the April 2020 travel-nadir, that number was less than 40 %. FintechZoom analysts, however, are having difficulty keeping up with recent gains. The typical analyst price target for Boeing stock is just $236, under the $268 level that shares had been 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.