Jefferies analyst Sheila Kahyaoglu has maintained their bullish stance on SPR stock, giving a Buy rating today.
Sheila Kahyaoglu has assigned a Buy rating to Spirit AeroSystems based on a combination of factors that suggest an optimistic outlook for the company’s future performance. Despite the challenges presented by uncertain 737 production rates and ongoing contract negotiations with Airbus, Kahyaoglu sees positive drivers such as higher production rates, improved profitability, and a more stable operating environment going forward. A key aspect of this positive outlook is the anticipated stabilization of free cash flow, with a forecasted positive $36 million in 2024, reversing from a $374 million usage in 2023. Kahyaoglu’s analysis indicates a runway to increasing earnings and the potential for stock appreciation.
The report also details the expected ramp-up of 737 deliveries and an increase in shipset deliveries, which are projected to climb by 16% in 2024. Furthermore, the renegotiated Memorandum of Agreement with Boeing is expected to drive improved profits on the 787 program, with a significant price increase per shipset. This, along with higher 787 delivery volumes projected for the forthcoming years, positions the program to contribute positively to margins by 2025. While the Airbus programs pose a cash drag, there’s potential for an upside from a renegotiated deal. These factors, combined with a path to positive free cash flow driven by improved net income and higher production rates, underpin Kahyaoglu’s Buy rating for Spirit AeroSystems.
According to TipRanks, Kahyaoglu is a 5-star analyst with an average return of 7.9% and a 62.55% success rate. Kahyaoglu covers the Industrials sector, focusing on stocks such as Boeing, General Electric, and Delta Air Lines.
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.
Read More on SPR:
- Alibaba downgraded, Disney upgraded: Wall Street’s top analyst calls
- Spirit AeroSystems upgraded to Outperform from Market Perform at TD Cowen
- Spirit AeroSystems price target raised to $32 from $30 at UBS
- Spirit says negotiations with Airbus ‘productive’
- Spirit in talks with Airbus on operating, financial elements of contract
