BoeingStock – There’s Plenty to Like About Aerospace Stocks, Including Boeing. Here is Why.
Wall Street is actually starting to take notice of the aerospace sector’s recovery, growing more and more optimistic about the prospects of the entire 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 a whole sector.
She is also more bullish on shares of Boeing (ticker: BA), raising her price target to $274 from $250 a share. Liwag indicates that there is a “line of sight to a much healthier backdrop.” That’s news which is good for aerospace investors.
Air travel was decimated by the global pandemic, taking aerospace and travel stocks down with it. On April fourteen, 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 incredible 96 % year over year. That number has since risen. On Sunday, 1.3 million people passed through TSA checkpoints.
Investors have previously noticed everything is getting much better for the aerospace industry and broader travel recovery. Boeing stock rose greater than 20 % this past week. Additional travel related stocks have moved as well. 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 %.
Things, however, can easily still get much better from here, Liwag noted. BoeingStock are down aproximatelly forty % from their all-time high. “From the chats of ours with investors, the [aerospace] group is still primarily under owned,” published 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 advises are Spirit AeroSystems (SPR) as well as Raytheon Technologies (RTX). Her various other Buy rated stocks include defense suppliers such as Lockheed Martin (LMT).
Lwiag’s peers are coming around to her far more bullish view. Around 50 % of analysts covering BoeingStock rate them Buy. At the April 2020 travel-nadir, that number was less than 40 %. FintechZoom analysts, nonetheless, are having problems keeping up with recent gains. The typical analyst price target for Boeing stock is only $236, below the $268 level that 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 somewhat.
BoeingStock – There’s Plenty to Like About Aerospace Stocks, Including Boeing. Here’s Why.