Boeing Could Be the Most Powerful Recovery Play on the Market

February 1, 2021
911 Views

Betting on the upside of stocks always carries risk, but the potential for gains is impossible to ignore. Boeing Co. (NYSE: BA) was one of the worst-performing stocks of 2020 and it hasn’t had a great start in 2021. At the close of trading on Friday it had lost -9.28% in the year to date. Momentum is negative, and this is something that often drives investors to sell.

However, some top analysts argue that Boeing is actually one of the best recovery plays on the market. The eventual containment of the Coronavirus Pandemic and a return to normality could send shares surging.

Boeing Targets are Still Sky High

Despite Boeing’s underperformance, analysts are still confident that the stock will start to climb in 2021.

The current average target of $230.25 would create a reasonable return for investors who pick up the stock at today’s price.

It’s not just off-beat analysts who suggest that the stock will soar. Morgan Stanley, one of the most respected financial firms in the world, raised its price target to a clean $230 last week, up from its previous target of $165. Analysts considered several factors to determine the target price.

Boeing’s 737 MAX has now been recertified for flight, and major airlines are reactivating their fleets. Boeing is likely to ramp up production of the 737 MAX, especially considering that Coronavirus vaccines are now in distribution. Vaccines and an eventual decline in COVID-19 transmission rates could help the global air travel market to recover later this year.

From more than 3,300 confirmed 737 MAX orders, Boeing has delivered 387 completed jets. With a list price of $121.6 million, the company has a significant revenue stream to look forward to in the coming years.

Don’t Ignore the Inherent Value in This Stock Pick

The most bullish analysts have set targets as high as $306, suggesting that the right market conditions could cause Boeing to skyrocket.

Even if it doesn’t climb immediately, this stock is almost certain to hit a rebound pattern eventually. Any investor willing to leverage Boeing’s massive potential can purchase the stock while it’s still affordable.

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