BoeingStock - There is 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 regarding the aerospace industry to Attractive from Cautious. That is just like going to Buy from Hold on a stock, besides it is for an entire sector.
She's also far more bullish on shares of Boeing (ticker: BA), raising her price target to $274 from $250 a share. Liwag says there's a "line of sight to a healthier backdrop." That is news that is good for aerospace investors.
Air travel was decimated by the worldwide pandemic, taking aerospace as well as traveling stocks down with it. On April 14, 87,534 people 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 folks passed through TSA checkpoints.
Investors have already noticed things are getting much better for the aerospace industry and broader traveling restoration. Boeing stock rose more than 20 % this past week. Additional 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 nine %.
Things, nevertheless, can easily still get better from here, Liwag noted. BoeingStock are down aproximatelly 40 % from their all time high. "From the chats of ours with investors, the [aerospace] class is still largely under-owned," published the analyst. She sees Covid-19 vaccine rollouts and easing of cross-country travel restrictions as further catalysts that can drive sector stocks higher in the coming months.
Liwag rated Boeing shares Buy before publishing her updated industry view. Additional aerospace suppliers she suggests are actually Spirit AeroSystems (SPR) and Raytheon Technologies (RTX). The various other Buy rated stocks of her include defense suppliers including Lockheed Martin (LMT).
Lwiag's peers are coming around to her more bullish view. Around fifty % of analysts covering BoeingStock rate them Buy. At the April 2020 travel-nadir, that number was lower than 40 %. FintechZoom analysts, however, are having trouble keeping up with recent gains. The typical analyst price target for Boeing stock is just $236, under the $268 level that 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's Why.