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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 is Why.

Wall Street is starting to take notice of the aerospace sector’s recovery, growing progressively more 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, besides it is for a whole sector.

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

Air travel was decimated by the global pandemic, taking aerospace as well as travel stocks down with it. On April 14, 87,534 people boarded planes in the U.S., based on details from the Transportation Security Administration, the lowest number during the pandemic and down an astounding 96 % year over year. The number has since risen. On Sunday, 1.3 million folks passed by TSA checkpoints.

Investors have previously noticed the situation is getting much better for the aerospace industry and broader travel recovery. 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 9 %.

Items, however, can easily still get better from here, Liwag noted. BoeingStock are actually down aproximatelly forty % from their all-time high. “From our chats 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 that can drive sector stocks higher in the coming months.

Liwag rated Boeing shares Buy before publishing her updated industry view. Other aerospace suppliers she suggests are Spirit AeroSystems (SPR) as well as Raytheon Technologies (RTX). Her other Buy-rated stocks include defense suppliers like Lockheed Martin (LMT).

Lwiag’s peers are coming around to her far more bullish view. Over fifty % of analysts covering BoeingStock rate them Buy. At the April 2020 travel-nadir, that number was less than forty %. FintechZoom analysts, however, are having difficulty keeping up with the newest gains. The typical analyst price target for Boeing stock is just $236, under the $268 level that shares had been 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 slightly.

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

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