Robert W. Baird analyst Peter Arment assigned a Buy rating on Spirit AeroSystems (SPR – Research Report) on May 7 and set a price target of $36.00.
Peter Arment has given his Buy rating due to a combination of factors including Spirit AeroSystems’ integral role in the aerospace industry and the anticipated benefits from operational improvements. As a key supplier with a significant portion of sales tied to Boeing and Airbus, Spirit AeroSystems (SPR) is positioned as a near pure-play on the original equipment manufacturer (OEM) cycle. Despite a year-over-year decline in Boeing shipset deliveries due to a production slowdown, Spirit’s management has established a rigorous inspection process, indicating a commitment to quality and compliance, which is expected to stabilize operations over time.
Moreover, Arment’s outlook is likely influenced by the potential for a deal with Boeing and the resolution of pricing negotiations with Airbus, which could lead to improved financials. The company’s focus on stabilizing operations, improving product conformity, and supply chain integrity, particularly for the 737-MAX program, suggests a pathway to recovery. Additionally, the prospect of Boeing acquiring Spirit AeroSystems could offer supply chain optimizations and enhance production efforts, potentially unlocking shareholder value. All these elements contribute to the rationale behind Arment’s positive recommendation for SPR.
In another report released on May 7, Bernstein also maintained a Buy rating on the stock with a $35.00 price target.
SPR’s price has also changed moderately for the past six months – from $24.620 to $32.910, which is a 33.67% increase.
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Spirit AeroSystems (SPR) Company Description:
Spirit AeroSystems Holdings, Inc. engages in the design and manufacture of aero structures for commercial and defense aircraft. It operates its business through the following segments: Fuselage Systems, Propulsion Systems, and Wing Systems. The Fuselage Systems segment develops, produces and markets forward, mid, and rear fuselage sections and systems. The Propulsion Systems segment offers struts or pylons, nacelles, and related engine components. The Wing Systems segment includes the development, production, and market of wings, wing components, and other miscellaneous structural parts to primarily aircraft original equipment manufacturer, related spares, and maintenance, repair, and overhaul services. The company was founded on February 7, 2005 and is headquartered in Wichita, KS.
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