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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 entire industry which includes beleaguered Boeing.

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

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

Air travel was decimated by the worldwide pandemic, taking aerospace and traveling stocks down with it. On April fourteen, 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 amazing ninety six % year over year. That number has since risen. On Sunday, 1.3 million people passed by TSA checkpoints.

Investors have noticed everything is getting better for the aerospace industry and broader traveling recovery. Boeing stock rose more than twenty % this past week. Other travel related stocks have moved too. American Airlines (AAL) shares, for example, jumped 14 % this past week. United Airlines (UAL) shares rose 11 %. Stock in cruise operator Carnival (CCL) rose 9 %.

Items, nevertheless, can continue to get much better from here, Liwag noted. BoeingStock are down aproximatelly 40 % from their all-time high. “From our conversations with investors, the [aerospace] team is still largely under-owned,” posted the analyst. She sees Covid-19 vaccine rollouts and easing of cross-country travel restrictions as more 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 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 much more bullish view. More than fifty % of analysts covering BoeingStock rate them Buy. At the April 2020 travel-nadir, that number was lower than forty %. FintechZoom analysts, nonetheless, are having difficulty keeping up with recent gains. The regular analyst price target for Boeing stock is just $236, below 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 somewhat.

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

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