Boeing 's stock is poised to rally as Covid vaccination coverage increases around the world, investment firm Bernstein said Tuesday. Bernstein upgraded the aircraft manufacturer's stock to an outperform rating from market perform. The firm also raised its price target to $279 per share from $252, implying 27.7% upside from Tuesday's closing price. "We believe we are finally heading to the inflection point for global travel. Is it time to party? We are not there quite yet, but the path now looks secure," Bernstein's Douglas Harned said in a note Tuesday. "Our Boeing upgrade is driven by the improving outlook for longer-term commercial aerospace demand." Bernstein predicts most major markets are ready to reopen within six months, given improving vaccination rates. "We have shown how immunity through vaccines and infections drives traffic in the US and in Europe and how vaccines are starting to drive traffic in other markets (e.g. India, Japan). In the last two months, we have finally seen rapid acceleration in vaccine penetration in new markets," Harned said. The firm noted specific challenges for Boeing, including issues related with its 737 Max jets since two fatal crashes of the model in 2018 and 2019. "Boeing has more company-specific issues as it works to raise 737MAX rates, return to 787 deliveries, and address program issues in defense (e.g. KC-46). But, at the current share price, we believe there is sufficient upside long-term to justify an Outperform rating," Harned said. Shares of Boeing are underperforming the market this year. The stock is up 2% in 2021 compared with the S & P 500's 15.9% gain. The firm also upgraded and raised price targets on Airbus and Spirit . —CNBC's Michael Bloom contributed reporting.
File photo of a Boeing B737 specifically 737-400 Cargo freight aircraft.
Nicolas Economou | NurPhoto | Getty Images
Boeing's stock is poised to rally as Covid vaccination coverage increases around the world, investment firm Bernstein said Tuesday.