BoeingStock – Theres Plenty to Like About Aerospace Stocks, Including Boeing. Here is Why.
BoeingStock – There’s 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 more and more optimistic about the prospects of the entire 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 like going to Buy from Hold on a stock, except it is for a whole sector.
She is additionally 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 much healthier backdrop.” That is fantastic news for aerospace investors.
Air travel was decimated by the global pandemic, taking aerospace as well as 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 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 have noticed things are getting much better for the aerospace industry and broader travel restoration. Boeing stock rose in excess of 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 %. Stock in cruise operator Carnival (CCL) rose nine %.
Things, however, can still get better from here, Liwag noted. BoeingStock are actually down about forty % from their all-time high. “From the conversations of ours with investors, the [aerospace] group is still largely under-owned,” published the analyst. She sees Covid-19 vaccine rollouts and easing of cross country travel restrictions as additional catalysts which 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 actually Spirit AeroSystems (SPR) and Raytheon Technologies (RTX). Her various other Buy rated stocks include defense suppliers like Lockheed Martin (LMT).
Lwiag’s peers are actually 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 forty %. FintechZoom analysts, nevertheless, are having problems keeping up with the newest gains. The regular analyst price target for Boeing stock is just $236, below the $268 level which 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’s Plenty to Like About Aerospace Stocks, Including Boeing. Here’s Why.