BoeingStock – There is Plenty to Like About Aerospace Stocks, Including Boeing. Heres Why.
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 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, except it is for a complete sector.
She is also far 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 is news that 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 fourteen, 87,534 individuals boarded planes in the U.S., as reported by details from the Transportation Security Administration, probably the lowest number throughout the pandemic and down an incredible 96 % year over year. The number has since risen. On Sunday, 1.3 million people passed through TSA checkpoints.
Investors have already noticed everything is getting better for the aerospace industry as well as broader travel restoration. Boeing stock rose more than twenty % this past week. Additional travel-related stocks have moved too. American Airlines (AAL) shares, for instance, jumped 14 % this past week. United Airlines (UAL) shares rose 11 %. Inventory in cruise operator Carnival (CCL) rose nine %.
Items, nevertheless, can easily still get much better from here, Liwag noted. BoeingStock are actually down about 40 % from their all time high. “From the chats of ours with investors, the [aerospace] team is still primarily under owned,” wrote the analyst. She sees Covid 19 vaccine rollouts and easing of cross country travel restrictions as additional 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 suggests are Spirit AeroSystems (SPR) as well as Raytheon Technologies (RTX). The other Buy-rated stocks of her include defense suppliers including 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 under forty %. FintechZoom analysts, however, are having difficulty 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 somewhat.
BoeingStock – There is Plenty to Like About Aerospace Stocks, Including Boeing. Here’s Why.