Analyst Expects Spirit AeroSystems To See Lower Cash Generation & Raises Other Concerns
Portfolio Pulse from Lekha Gupta
Truist Securities analyst Michael Ciarmoli downgraded Spirit AeroSystems Holdings Inc (NYSE:SPR) from Buy to Hold with a lowered price target of $25 from $42. The company reported revenue growth of 8% year-over-year to $1.36 billion, beating the consensus of $1.31 billion. However, Ciarmoli expects lower FCF generation in 2024 and 2025 and notes advance repayment of $100 million in 2025 as an unforeseen development. He also expects a contract renegotiation failure with The Boeing Company (NYSE:BA) to weigh on margins and result in additional cash.
August 04, 2023 | 2:14 pm
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NEGATIVE IMPACT
The Boeing Company could potentially face a contract renegotiation failure with Spirit AeroSystems.
A potential contract renegotiation failure with Spirit AeroSystems could negatively impact Boeing's operations and financial performance.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 60
NEGATIVE IMPACT
Spirit AeroSystems has been downgraded by Truist Securities due to expected lower FCF generation and potential contract renegotiation failure with Boeing.
The downgrade by Truist Securities, along with the lowered price target, indicates a negative outlook for Spirit AeroSystems. The expected lower FCF generation and potential contract renegotiation failure with Boeing could negatively impact the company's financial performance.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100