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 more and more optimistic about the prospects of the whole industry which includes beleaguered Boeing.
Friday evening, Morgan Stanley analyst Kristine Liwag moved her investment view regarding the aerospace industry to Attractive from Cautious. That’s just like going to Buy from Hold on a stock, except it’s 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 is a “line of sight to a healthier backdrop.” That’s very good news for aerospace investors.
Air travel was decimated by the global pandemic, taking aerospace and travel stocks down with it. On April 14, 87,534 individuals boarded planes in the U.S., according to data from the Transportation Security Administration, the lowest number throughout the pandemic and down an amazing 96 % year over year. That number has since risen. On Sunday, 1.3 million individuals passed by TSA checkpoints.
Investors have previously noticed the situation is getting better for the aerospace industry as well as broader travel recovery. Boeing stock rose more than twenty % this past week. Other travel related stocks have moved also. American Airlines (AAL) shares, for example, jumped fourteen % this past week. United Airlines (UAL) shares rose 11 %. Inventory in cruise operator Carnival (CCL) rose 9 %.
Things, nonetheless, can still get better from here, Liwag noted. BoeingStock are down about 40 % from their all-time high. “From our chats with investors, the [aerospace] team is still primarily under-owned,” published 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. Other aerospace suppliers she recommends are Spirit AeroSystems (SPR) and Raytheon Technologies (RTX). The other Buy-rated stocks of her include defense suppliers such as Lockheed Martin (LMT).
Lwiag’s peers are coming around to her far more bullish view. More than fifty % of analysts covering BoeingStock rate them Buy. At the April 2020 travel-nadir, that number was under 40 %. FintechZoom analysts, however, are having difficulty keeping up with the newest gains. The average analyst price target for Boeing stock is only $236, under 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 is Plenty to Like About Aerospace Stocks, Including Boeing. Here is Why.