BoeingStock - There is Plenty to Like About Aerospace Stocks, Including Boeing. Here's Why.
Wall Street is actually starting to take notice of the aerospace sector's recovery, growing progressively more optimistic about the prospects of the entire industry which includes beleaguered Boeing.
Friday evening, Morgan Stanley analyst Kristine Liwag moved her investment view about the aerospace industry to Attractive from Cautious. That is just like going to Buy from Hold on a stock, except it is for a complete sector.
She is also more bullish on shares of Boeing (ticker: BA), raising her price goal to $274 from $250 a share. Liwag says there is a "line of sight to a much healthier backdrop." That is great news for aerospace investors.
Air travel was decimated by the worldwide pandemic, taking aerospace as well as traveling stocks down with it. On April fourteen, 87,534 people boarded planes in the U.S., as reported by information from the Transportation Security Administration, probably the lowest number during the pandemic and down an amazing ninety six % year over year. That number has since risen. On Sunday, 1.3 million people passed through TSA checkpoints.
Investors have noticed things are getting better for the aerospace industry and broader travel recovery. Boeing stock rose in excess of twenty % this past week. Other travel related stocks have moved as well. American Airlines (AAL) shares, for instance, jumped 14 % this past week. United Airlines (UAL) shares rose 11 %. Inventory in cruise operator Carnival (CCL) rose nine %.
Things, nonetheless, can easily still get much 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] class is still largely under-owned," posted 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 industry view. Other aerospace suppliers she advises are actually Spirit AeroSystems (SPR) and 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 much more bullish view. Around 50 % of analysts covering BoeingStock rate them Buy. At the April 2020 travel-nadir, that number was lower than forty %. FintechZoom analysts, nevertheless, 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 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.