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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’s Why.

Wall Street is actually starting 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 about the aerospace industry to Attractive from Cautious. That is just like going to Buy from Hold on a stock, except it’s for a whole sector.

She is additionally more bullish on shares of Boeing (ticker: BA), raising her price goal to $274 from $250 a share. Liwag says there is 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 traveling stocks down with it. On April 14, 87,534 people boarded planes in the U.S., according to details from the Transportation Security Administration, the lowest number during the pandemic and down an astounding ninety six % year over year. The number has since risen. On Sunday, 1.3 million folks passed by TSA checkpoints.

Investors have noticed things are getting much 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 instance, jumped 14 % this past week. United Airlines (UAL) shares rose 11 %. Stock in cruise operator Carnival (CCL) rose nine %.

Things, nevertheless, 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. Other aerospace suppliers she recommends are actually Spirit AeroSystems (SPR) and Raytheon Technologies (RTX). Her various other Buy rated stocks include defense suppliers like Lockheed Martin (LMT).

Lwiag’s peers are actually 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, however, are having problems 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’s Plenty to Like About Aerospace Stocks, Including Boeing. Here is Why.

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