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BoeingStock – There is Plenty to Like About Aerospace Stocks, Including Boeing. Heres Why.

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

Wall Street is beginning to take notice of the aerospace sector’s recovery, growing increasingly optimistic about the prospects of the entire industry which includes beleaguered Boeing.

Friday evening, Morgan Stanley analyst Kristine Liwag moved her funding view about the aerospace industry to Attractive from Cautious. That’s like going to Buy from Hold on a stock, except it’s for an entire 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 healthier backdrop.” That is news that 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 people boarded planes in the U.S., according to data from the Transportation Security Administration, the lowest number during the pandemic and down an incredible 96 % year over year. The number has since risen. On Sunday, 1.3 million folks 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 20 % this past week. Other travel related stocks have moved as well. American Airlines (AAL) shares, for instance, jumped fourteen % this past week. United Airlines (UAL) shares rose 11 %. Inventory in cruise operator Carnival (CCL) rose nine %.

Things, nonetheless, can still get much better from here, Liwag noted. BoeingStock are down about 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 additional catalysts which can 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 including Lockheed Martin (LMT).

Lwiag’s peers are actually coming around to her more bullish view. Over 50 % of analysts covering BoeingStock rate them Buy. At the April 2020 travel nadir, that number was less than forty %. FintechZoom analysts, nonetheless, are having difficulty keeping up with recent gains. The typical 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 is Plenty to Like About Aerospace Stocks, Including Boeing. Here’s Why.

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