Cai von Rumohr, an analyst from TD Cowen, maintained the Buy rating on Spirit AeroSystems (SPR – Research Report). The associated price target is $35.00.
Cai von Rumohr has given his Buy rating due to a combination of factors that suggest Spirit AeroSystems (SPR) is improving its production capabilities and financial outlook despite a challenging first quarter. von Rumohr recognizes that while the first quarter showed a significant loss and cash use for SPR, there is a notable progress in production such as an efficient revised inspection process, successful addressing of FAA audit findings, and a stable output target which bodes well for future productivity. The analyst believes that these production achievements lay a foundation for a stronger financial performance in the second half of the year.
Moreover, von Rumohr points out that while the second quarter is expected to see a considerable cash drain due to inventory buildup and cash flow reduction, a significant positive swing in cash flow is anticipated in the third quarter. This projection is based on SPR’s expectations to deliver a substantial number of 737s, which should exceed the consensus estimates for free cash flow (FCF). Additionally, von Rumohr sees potential for SPR to successfully continue as a standalone entity with solid FCF prospects, should negotiations with Boeing and Airbus not result in a deal, further justifying the Buy rating.
According to TipRanks, von Rumohr is a 5-star analyst with an average return of 7.0% and a 62.50% success rate. von Rumohr covers the Industrials sector, focusing on stocks such as Triumph Group, Boeing, and Embraer SA.
In another report released today, Barclays also maintained a Buy rating on the stock with a $40.00 price target.
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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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