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

Wall Street is actually 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 funding 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 a complete sector.

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

Air travel was decimated by the worldwide 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 throughout the pandemic and down an incredible 96 % year over year. The number has since risen. On Sunday, 1.3 million individuals passed through TSA checkpoints.

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

Things, 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] 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 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 advises are actually Spirit AeroSystems (SPR) and Raytheon Technologies (RTX). Her various other Buy-rated stocks include defense suppliers including Lockheed Martin (LMT).

Lwiag’s peers are actually coming around to her much more bullish view. Over 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 trouble keeping up with the latest gains. The typical analyst price target for Boeing stock is only $236, below the $268 level which shares were 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 is Why.