BoeingStock – There’s Plenty to Like About Aerospace Stocks, Including Boeing. Here’s Why.
Wall Street is starting to take notice of the aerospace sector’s recovery, growing progressively more optimistic about the prospects of the entire industry including beleaguered Boeing.
Friday evening, Morgan Stanley analyst Kristine Liwag moved the funding view of her about the aerospace industry to Attractive from Cautious. That’s like going to Buy from Hold on a stock, except it’s for a whole sector.
She is also more bullish on shares of Boeing (ticker: BA), raising her price goal to $274 from $250 a share. Liwag indicates that there is a “line of sight to a much healthier backdrop.” That’s good news for aerospace investors.
Air travel was decimated by the worldwide pandemic, taking aerospace and traveling stocks down with it. On April 14, 87,534 individuals boarded planes in the U.S., as reported by data from the Transportation Security Administration, the lowest number during the pandemic and down an amazing 96 % year over year. The number has since risen. On Sunday, 1.3 million people passed through TSA checkpoints.
Investors already have noticed the situation is getting much better for the aerospace industry as well as broader traveling restoration. Boeing stock rose more than 20 % this past week. Other travel-related stocks have moved too. American Airlines (AAL) shares, for example, jumped 14 % this past week. United Airlines (UAL) shares rose 11 %. Stock in cruise operator Carnival (CCL) rose 9 %.
Items, nonetheless, can continue to get much better from here, Liwag noted. BoeingStock are down aproximatelly forty % from their all-time high. “From our conversations with investors, the [aerospace] team is still primarily under owned,” posted the analyst. She sees Covid-19 vaccine rollouts and easing of cross-country travel restrictions as further catalysts which will 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 Spirit AeroSystems (SPR) and Raytheon Technologies (RTX). The other Buy rated stocks of her include defense suppliers like Lockheed Martin (LMT).
Lwiag’s peers are coming around to her more bullish view. Around 50 % of analysts covering BoeingStock rate them Buy. At the April 2020 travel nadir, that number was less than forty %. FintechZoom analysts, nonetheless, are having problems keeping up with recent gains. The average analyst price target for Boeing stock is only $236, below the $268 level which shares had been 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.