BoeingStock - There is Plenty to Like About Aerospace Stocks, Including Boeing. Here is Why.
Wall Street is actually beginning to take notice of the aerospace sector's recovery, growing increasingly 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 like going to Buy from Hold on a stock, except it's for a whole sector.
She is also far more bullish on shares of Boeing (ticker: BA), raising her price objective to $274 from $250 a share. Liwag indicates that there is a "line of sight to a much healthier backdrop." That's very good news for aerospace investors.
Air travel was decimated by the worldwide pandemic, taking aerospace and travel stocks down with it. On April 14, 87,534 individuals boarded planes in the U.S., according to details from the Transportation Security Administration, the lowest number throughout the pandemic and down an astounding 96 % year over year. That number has since risen. On Sunday, 1.3 million people passed by TSA checkpoints.
Investors already have noticed everything is getting better for the aerospace industry and broader traveling recovery. Boeing stock rose greater than twenty % 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 9 %.
Items, nonetheless, can easily still get much better from here, Liwag noted. BoeingStock are down aproximatelly 40 % from their all time high. "From our chats with investors, the [aerospace] group is still primarily under-owned," had written 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 proposes are Spirit AeroSystems (SPR) as well as Raytheon Technologies (RTX). The various other Buy rated stocks of her include defense suppliers such as Lockheed Martin (LMT).
Lwiag's peers are actually coming around to her much more bullish view. Over fifty % of analysts covering BoeingStock rate them Buy. At the April 2020 travel-nadir, that number was under forty %. FintechZoom analysts, nonetheless, are having difficulty keeping up with the latest gains. The average analyst price target for Boeing stock is just $236, below the $268 level that shares were 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 is Why.