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Fly News Breaks for June 5, 2017
BA, SPR
Jun 5, 2017 | 07:13 EDT
Spirit AeroSystems (SPR) is trading near its all-time deepest earnings discount versus Boeing (BA) despite Spirit generating better financial results, Citi analyst Jason Gursky tells investors in a research note. While the protracted Boeing negotiation is an overhang, it is already reflected in the multiple, the analyst argues. He highlights Spirit's improving cash flow, balance sheet flexibility, shareholder-friendly cash deployment and new growth opportunities. He sees a path to $85 per share "over time" and reiterates a Buy rating on the shares with a one-year target of $70.
News For SPR;BA From the Last 2 Days
BA
Mar 28, 2024 | 06:35 EDT
Citi lowered the firm's price target on Boeing to $252 from $263 and keeps a Buy rating on the shares. The analyst says the fundamental outlook for commercial aerospace and Boeing has not changed as demand for new aircraft remains robust and there are only two major competitors that can fulfill it. While Boeing has stumbled on execution, this is not a permanent state, the analyst tells investors in a research note. Once fixed, Boeing's balance sheet repair will be the focus, as it should be, says Citi. The firm, however, sees no quick fix, and believes patience is required.