Categories
Markets

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 actually starting to take notice of the aerospace sector’s recovery, growing increasingly optimistic about the prospects of the whole industry which includes beleaguered Boeing.

Friday evening, Morgan Stanley analyst Kristine Liwag moved the funding view of her regarding the aerospace industry to Attractive from Cautious. That’s just like going to Buy from Hold on a stock, besides it’s for a whole sector.

She is additionally more bullish on shares of Boeing (ticker: BA), raising her price goal to $274 from $250 a share. Liwag indicates that there’s a “line of sight to a healthier backdrop.” That’s great news for aerospace investors.

Air travel was decimated by the global pandemic, taking aerospace as well as traveling stocks down with it. On April fourteen, 87,534 individuals boarded planes in the U.S., as reported by details from the Transportation Security Administration, the lowest number during the pandemic and down an astounding ninety six % year over year. That number has since risen. On Sunday, 1.3 million individuals passed by TSA checkpoints.

Investors already have noticed the situation is getting much 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 14 % this past week. United Airlines (UAL) shares rose 11 %. Inventory in cruise operator Carnival (CCL) rose 9 %.

Things, nonetheless, can still get much better from here, Liwag noted. BoeingStock are actually down aproximatelly forty % from their all time high. “From our conversations with investors, the [aerospace] team 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 recommends are Spirit AeroSystems (SPR) and Raytheon Technologies (RTX). Her other Buy-rated stocks include defense suppliers like Lockheed Martin (LMT).

Lwiag’s peers are coming around to her far more bullish view. More than 50 % of analysts covering BoeingStock rate them Buy. At the April 2020 travel nadir, that number was under 40 %. FintechZoom analysts, nonetheless, are having difficulty keeping up with the latest gains. The average analyst price target for Boeing stock is just $236, under 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 somewhat.

BoeingStock – There’s Plenty to Like About Aerospace Stocks, Including Boeing. Here is Why.

Leave a Reply

Your email address will not be published. Required fields are marked *