How Spirit AeroSystems Is Caught Between Boeing And Airbus Tactics
Portfolio Pulse from Priya Nigam
Spirit AeroSystems Holdings Inc (SPR) faces uncertainty due to its position between Boeing (BA) and Airbus (EADSY). Analyst Josh Sullivan downgraded SPR from Buy to Hold, citing production issues with Boeing's 737-MAX and 787, and Airbus's reluctance to acquire SPR assets. SPR shares were up 1% to $31.45.
June 20, 2024 | 4:57 pm
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NEGATIVE IMPACT
Boeing (BA) faces challenges with production issues for the 737-MAX and 787, which impacts its relationship with key supplier Spirit AeroSystems (SPR). The uncertainty around reacquiring SPR assets could delay improvements in overall quality.
Boeing's production issues with the 737-MAX and 787 create uncertainty around its relationship with SPR. This could delay improvements in quality, negatively impacting BA's stock price in the short term.
CONFIDENCE 80
IMPORTANCE 80
RELEVANCE 70
NEGATIVE IMPACT
Spirit AeroSystems Holdings Inc (SPR) was downgraded from Buy to Hold by Benchmark due to uncertainties with Boeing and Airbus. Production issues with Boeing's 737-MAX and 787, and Airbus's reluctance to acquire SPR assets, contribute to the uncertainty.
The downgrade from Buy to Hold by Benchmark indicates a negative outlook for SPR in the short term. The production issues with Boeing and Airbus's reluctance to acquire SPR assets add to the uncertainty, likely leading to a negative impact on SPR's stock price.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100
NEUTRAL IMPACT
Airbus (EADSY) is reluctant to acquire Spirit AeroSystems (SPR) assets, which are currently running at a loss. This reluctance adds to the uncertainty for SPR and impacts Airbus's strategic decisions.
Airbus's reluctance to acquire SPR assets adds to the uncertainty for SPR but has a neutral short-term impact on EADSY's stock price. The strategic decision does not significantly affect Airbus's overall operations.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 50