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BoeingStock – There is 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 progressively more optimistic about the prospects of the entire industry including beleaguered Boeing.

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

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

Air travel was decimated by the global pandemic, taking aerospace as well as traveling stocks down with it. On April 14, 87,534 people boarded planes in the U.S., based on information from the Transportation Security Administration, the lowest number during the pandemic and down an amazing 96 % year over year. That number has since risen. On Sunday, 1.3 million individuals passed by TSA checkpoints.

Investors have already noticed things are getting better for the aerospace industry and broader travel recovery. Boeing stock rose greater than 20 % this past week. Other travel-related stocks have moved too. American Airlines (AAL) shares, for example, jumped 14 % this past week. United Airlines (UAL) shares rose 11 %. Stock in cruise operator Carnival (CCL) rose 9 %.

Things, however, can easily still get better from here, Liwag noted. BoeingStock are actually down about 40 % from their all time high. “From our conversations with investors, the [aerospace] group is still largely under-owned,” had written the analyst. She sees Covid 19 vaccine rollouts and easing of cross country travel restrictions as additional catalysts that can drive sector stocks higher in the coming months.

Liwag rated Boeing shares Buy before publishing her updated industry view. Other aerospace suppliers she suggests are actually 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 more bullish view. More than 50 % of analysts covering BoeingStock rate them Buy. At the April 2020 travel-nadir, that number was less than forty %. FintechZoom analysts, however, are having problems keeping up with the newest gains. The average analyst price target for Boeing stock is only $236, below 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 somewhat.

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

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