BoeingStock – There is Plenty to Like About Aerospace Stocks, Including Boeing. Here is 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 more and more optimistic about the prospects of the whole industry including beleaguered Boeing.

Friday evening, Morgan Stanley analyst Kristine Liwag moved her investment view regarding the aerospace industry to Attractive from Cautious. That is just like going to Buy from Hold on a stock, except 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 good news for aerospace investors.

Air travel was decimated by the global pandemic, taking aerospace and travel stocks down with it. On April 14, 87,534 people boarded planes in the U.S., as reported by information from the Transportation Security Administration, probably the lowest number throughout the pandemic and down an incredible ninety six % year over year. The number has since risen. On Sunday, 1.3 million folks passed by TSA checkpoints.

Investors have previously noticed everything is getting better for the aerospace industry as well as broader travel recovery. Boeing stock rose greater than twenty % this past week. Additional travel-related stocks have moved too. American Airlines (AAL) shares, for instance, jumped fourteen % this past week. United Airlines (UAL) shares rose 11 %. Stock in cruise operator Carnival (CCL) rose nine %.

Things, nonetheless, can continue to get 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 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. Other aerospace suppliers she suggests are Spirit AeroSystems (SPR) and Raytheon Technologies (RTX). Her various other Buy-rated stocks include defense suppliers such as Lockheed Martin (LMT).

Lwiag’s peers are actually coming around to her much more bullish view. Around 50 % of analysts covering BoeingStock rate them Buy. At the April 2020 travel-nadir, that number was under 40 %. FintechZoom analysts, nevertheless, are having difficulty keeping up with the latest gains. The regular analyst price target for Boeing stock is just $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.

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