BoeingStock – There is 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 increasingly optimistic about the prospects of the whole industry which includes 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 complete sector.
She is also 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 is news which is good for aerospace investors.
Air travel was decimated by the global pandemic, taking aerospace and travel stocks down with it. On April fourteen, 87,534 people boarded planes in the U.S., according to details from the Transportation Security Administration, the lowest number during the pandemic and down an astounding 96 % year over year. The number has since risen. On Sunday, 1.3 million individuals passed through TSA checkpoints.
Investors have noticed things are getting much better for the aerospace industry and broader travel restoration. Boeing stock rose in excess of 20 % 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 %. Inventory in cruise operator Carnival (CCL) rose 9 %.
Items, nonetheless, 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,” had written 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. Other aerospace suppliers she recommends are actually Spirit AeroSystems (SPR) and Raytheon Technologies (RTX). Her various other Buy-rated stocks include defense suppliers such as Lockheed Martin (LMT).
Lwiag’s peers are coming around to her far more bullish view. Over 50 % of analysts covering BoeingStock rate them Buy. At the April 2020 travel nadir, that number was under 40 %. FintechZoom analysts, however, are having problems keeping up with recent gains. The typical analyst price target for Boeing stock is just $236, below the $268 level that 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 somewhat.
BoeingStock – There is Plenty to Like About Aerospace Stocks, Including Boeing. Here’s Why.