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

By | March 15, 2021

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

Wall Street is 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 investment view of her regarding the aerospace industry to Attractive from Cautious. That is like going to Buy from Hold on a stock, except it is 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’s a “line of sight to a healthier backdrop.” That’s great news for aerospace investors.

Air travel was decimated by the worldwide pandemic, taking aerospace and traveling stocks down with it. On April fourteen, 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 individuals passed by TSA checkpoints.

Investors already have noticed the situation is getting better for the aerospace industry as well as broader travel restoration. Boeing stock rose greater than twenty % this past week. Other travel-related stocks have moved also. American Airlines (AAL) shares, for instance, jumped fourteen % this past week. United Airlines (UAL) shares rose 11 %. Inventory in cruise operator Carnival (CCL) rose 9 %.

Items, nonetheless, can easily still get better from here, Liwag noted. BoeingStock are down about forty % from their all-time high. “From the conversations of ours with investors, the [aerospace] team is still primarily under owned,” published the analyst. She sees Covid-19 vaccine rollouts and easing of cross country travel restrictions as more 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 advises 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 far more bullish view. Around 50 % of analysts covering BoeingStock rate them Buy. At the April 2020 travel nadir, that number was less than 40 %. FintechZoom analysts, nonetheless, are having difficulty keeping up with the latest gains. The regular analyst price target for Boeing stock is only $236, under 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 slightly.

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