Aerospace Industry Faces More Downgrades, But Recovery Expected, Says Analyst
Portfolio Pulse from Lekha Gupta
Stifel analyst Bert W. Subin discussed Boeing's potential acquisition of Spirit AeroSystems at $35 per share, valuing Spirit at $4.1 billion. The deal could result in a 4% dilution for Boeing. Airbus revised its 2024 earnings lower, impacting Boeing shares. Despite challenges, analysts remain confident in the long-term recovery of commercial aerospace OEMs.
June 25, 2024 | 5:52 pm
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POSITIVE IMPACT
Spirit AeroSystems could be acquired by Boeing at $35 per share, valuing the company at $4.1 billion. This represents a 22% premium over its pre-announcement trading level.
The potential acquisition by Boeing at a 22% premium is likely to positively impact Spirit AeroSystems' stock price in the short term.
CONFIDENCE 90
IMPORTANCE 85
RELEVANCE 100
NEGATIVE IMPACT
Boeing's potential acquisition of Spirit AeroSystems at $35 per share could lead to a 4% dilution. Airbus' earnings revision and production delays are weighing on Boeing shares.
The potential acquisition of Spirit AeroSystems could lead to a 4% dilution for Boeing, which may negatively impact its stock price in the short term. Additionally, Airbus' earnings revision and Boeing's production delays are likely to weigh on Boeing shares.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100
NEGATIVE IMPACT
Airbus revised its 2024 adjusted earnings lower by approximately $5.9 billion, which is weighing down on Boeing shares.
The downward revision of Airbus' earnings is likely to have a negative impact on its stock price and also indirectly affect Boeing shares.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 50
NEGATIVE IMPACT
Investors can gain exposure to Boeing through the iShares U.S. Aerospace & Defense ETF, which may be impacted by Boeing's potential acquisition and Airbus' earnings revision.
The iShares U.S. Aerospace & Defense ETF, which includes Boeing, may be negatively impacted by Boeing's potential acquisition and Airbus' earnings revision.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 30
NEGATIVE IMPACT
Investors can gain exposure to Boeing through the Invesco Aerospace & Defense ETF, which may be impacted by Boeing's potential acquisition and Airbus' earnings revision.
The Invesco Aerospace & Defense ETF, which includes Boeing, may be negatively impacted by Boeing's potential acquisition and Airbus' earnings revision.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 30