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

Wall Street is actually beginning to take notice of the aerospace sector’s recovery, growing more and more optimistic about the prospects of the whole industry which includes 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 a whole sector.

She’s also far more bullish on shares of Boeing (ticker: BA), raising her price goal to $274 from $250 a share. Liwag indicates that there is a “line of sight to a healthier backdrop.” That’s very good news 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, probably the lowest number throughout the pandemic and down an incredible 96 % year over year. That number has since risen. On Sunday, 1.3 million folks passed through TSA checkpoints.

Investors have already noticed things are getting better for the aerospace industry and broader travel recovery. Boeing stock rose in excess of 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 still get better from here, Liwag noted. BoeingStock are down about 40 % from their all-time high. “From the chats of ours with investors, the [aerospace] class is still primarily under-owned,” posted 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. Additional aerospace suppliers she recommends are Spirit AeroSystems (SPR) as well as Raytheon Technologies (RTX). The various other Buy rated stocks of her include defense suppliers like Lockheed Martin (LMT).

Lwiag’s peers are coming around to her more bullish view. Over fifty % of analysts covering BoeingStock rate them Buy. At the April 2020 travel nadir, that number was lower than forty %. FintechZoom analysts, nevertheless, are having trouble keeping up with the latest gains. The typical analyst price target for Boeing stock is just $236, under 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’s Why.