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

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

Wall Street is starting to take notice of the aerospace sector’s recovery, growing increasingly optimistic about the prospects of the whole industry including beleaguered Boeing.

Friday evening, Morgan Stanley analyst Kristine Liwag moved the funding view of her about the aerospace industry to Attractive from Cautious. That’s just like going to Buy from Hold on a stock, except it’s for a whole sector.

She is also 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 much healthier backdrop.” That’s news that is good for aerospace investors.

Air travel was decimated by the worldwide pandemic, taking aerospace and traveling stocks down with it. On April 14, 87,534 people boarded planes in the U.S., according to information from the Transportation Security Administration, the lowest number during the pandemic and down an incredible 96 % year over year. The number has since risen. On Sunday, 1.3 million folks passed through TSA checkpoints.

Investors have noticed things are getting better for the aerospace industry and broader traveling restoration. Boeing stock rose greater than 20 % this past week. Additional travel-related stocks have moved as well. American Airlines (AAL) shares, for example, jumped 14 % this past week. United Airlines (UAL) shares rose 11 %. Inventory in cruise operator Carnival (CCL) rose nine %.

Items, nonetheless, can continue to get much better from here, Liwag noted. BoeingStock are down aproximatelly 40 % from their all time high. “From the chats of ours with investors, the [aerospace] class is still largely under-owned,” wrote the analyst. She sees Covid 19 vaccine rollouts and easing of cross-country travel restrictions as further catalysts which can 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) as well as Raytheon Technologies (RTX). The other Buy rated stocks of her include defense suppliers like 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 under forty %. FintechZoom analysts, nonetheless, are having problems keeping up with recent gains. The typical 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’s Why.