BoeingStock – There is 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 whole industry including beleaguered Boeing.
Friday evening, Morgan Stanley analyst Kristine Liwag moved her investment view about the aerospace industry to Attractive from Cautious. That’s like going to Buy from Hold on a stock, except it is for an entire sector.
She’s also more bullish on shares of Boeing (ticker: BA), raising her price objective to $274 from $250 a share. Liwag says there is a “line of sight to a healthier backdrop.” That’s great news for aerospace investors.
Air travel was decimated by the worldwide pandemic, taking aerospace and traveling stocks down with it. On April fourteen, 87,534 individuals boarded planes in the U.S., according to details from the Transportation Security Administration, the lowest number throughout the pandemic and down an amazing 96 % year over year. The number has since risen. On Sunday, 1.3 million individuals passed through TSA checkpoints.
Investors have already noticed things are getting better for the aerospace industry and broader travel recovery. 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 %. Stock in cruise operator Carnival (CCL) rose 9 %.
Things, however, can easily still get much better from here, Liwag noted. BoeingStock are actually down about forty % from their all-time high. “From our chats with investors, the [aerospace] group is still primarily under-owned,” had written the analyst. She sees Covid 19 vaccine rollouts and easing of cross-country travel restrictions as more catalysts that can drive sector stocks higher in the coming months.
Liwag rated Boeing shares Buy before publishing her updated business view. Additional aerospace suppliers she advises are Spirit AeroSystems (SPR) as well as Raytheon Technologies (RTX). Her other Buy rated stocks include defense suppliers such as Lockheed Martin (LMT).
Lwiag’s peers are actually 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 under 40 %. FintechZoom analysts, nonetheless, are having trouble keeping up with recent gains. The regular analyst price target for Boeing stock is just $236, below 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.