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

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

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

She is 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 fantastic news 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., according to information from the Transportation Security Administration, probably the lowest number throughout the pandemic and down an incredible ninety six % year over year. The number has since risen. On Sunday, 1.3 million individuals passed by TSA checkpoints.

Investors have noticed things are getting better for the aerospace industry as well as broader travel restoration. Boeing stock rose greater than twenty % 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, however, can easily still get much better from here, Liwag noted. BoeingStock are actually down about forty % from their all-time high. “From the chats of ours with investors, the [aerospace] team is still largely under owned,” had written the analyst. She sees Covid 19 vaccine rollouts and easing of cross country travel restrictions as further catalysts which will drive sector stocks higher in the coming months.

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

Lwiag’s peers are actually coming around to her much more bullish view. Over 50 % of analysts covering BoeingStock rate them Buy. At the April 2020 travel-nadir, that number was under 40 %. FintechZoom analysts, nevertheless, are having problems keeping up with the newest gains. The average analyst price target for Boeing stock is just $236, below the $268 level that 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’s Why.

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