Fund

Spirit AeroSystems analyst turns bullish, sees ‘broader aerospace recovery’

The FAA’s dismantling of the 737 Max and recent positive coronavirus vaccine news bodes well for Spirit AeroSystems Holdings, Inc. (NYSE: PSR), according to Canaccord Genuity.

The Spirit AeroSystems analyst: Ken Herbert upgraded Spirit AeroSystems from Hold to Buy and raised the price target from $21 to $40.

The Spirit AeroSystems thesis: Although the stock has rallied significantly from its recent lows, it is still down about 65% year-to-date, underperforming its aerospace peers, Herbert said in the release note. day.

“While the recovery of MAX production will be slow (we are seeing a further shift to the right) and the supply chain will depend on the pace of from Boeing (NYSE: BA) MAX deliveries, we believe the MAX teardown, coupled with positive vaccine news, will continue to positively move the narrative on SPR more fully towards the pace of recovery and upside,” the analyst said.

Spirit AeroSystems’ aggressive moves on its cost structure could “add to the incremental upside in 2021-23 as volumes gradually recover,” he said.

Canaccord expects the company to continue to benefit “from an increased focus on value stocks and the broader aerospace recovery.”

SPR Price Action: Shares of Spirit AeroSystems were trading slightly at $32.56 when last checked on Friday.

Latest reviews for SPR

November 2020

Canaccord Genuity

Upgrades

Hold

To buy

November 2020

Jefferies

Upgrades

Hold

To buy

November 2020

Swiss credit

Restores

Neutral

View more analyst notes for SPR
See the latest analyst ratings

See more Benzinga

© 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.