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BoeingStock – There is 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 actually starting to take notice of the aerospace sector’s recovery, growing more and more optimistic about the prospects of the entire industry which includes beleaguered Boeing.

Friday evening, Morgan Stanley analyst Kristine Liwag moved her investment view about the aerospace industry to Attractive from Cautious. That’s just like going to Buy from Hold on a stock, besides it’s 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 is a “line of sight to a healthier backdrop.” That’s news that is good 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 individuals boarded planes in the U.S., based on information from the Transportation Security Administration, probably the lowest number during the pandemic and down an amazing ninety six % 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 recovery. Boeing stock rose in excess of twenty % this past week. Additional travel-related stocks have moved too. American Airlines (AAL) shares, for example, jumped fourteen % this past week. United Airlines (UAL) shares rose 11 %. Inventory in cruise operator Carnival (CCL) rose nine %.

Items, nonetheless, can still get much better from here, Liwag noted. BoeingStock are down aproximatelly forty % from their all time high. “From the chats of ours with investors, the [aerospace] class is still largely under-owned,” published 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 proposes are Spirit AeroSystems (SPR) and 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 far more bullish view. Around 50 % of analysts covering BoeingStock rate them Buy. At the April 2020 travel-nadir, that number was less than 40 %. FintechZoom analysts, however, are having difficulty keeping up with recent gains. The average 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.

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