Bank of America Corp. Downgrades Spirit AeroSystems Holdings to Neutral (SPR)
Spirit AeroSystems Holdings (NYSE:SPR) was downgraded by Bank of America Corp. from a “buy” rating to a “neutral” rating in a research note issued on Tuesday, American Banking News reports. They currently have a $32.00 price target on the stock, down from their previous price target of $36.00. Bank of America Corp.’s price objective indicates a potential downside of 5.02% from the stock’s previous close.
The analysts wrote, “In our view, the company’s decision to divest its Oklahoma facilities (Tulsa and McAlester) has been positive for the company as it lowers future operating risk for the company,” the report said. “We note that SPR develops and manufactures the integrated wings for the G650 and G280 in Tulsa. Without these facilities, SPR would have more flexibility to reallocate engineering and management resources to improve core programs as well as larger development programs like the A350. However, until SPR is able to divest the Oklahoma facilities, the company still carries the contractual pricing risks related to the G650 and G280.” The report further asserted that the price objective rise is based on 12.5x one-year forward multiple on 2015E earnings. It was also noted that 12.5x is on the lower end of the A&D peer range as analysts factor in the operational hiccups SPR has historically faced and its current status is a “show-me”
Shares of Spirit AeroSystems Holdings (NYSE:SPR) traded down 1.09% during mid-day trading on Tuesday, hitting $33.69. The stock had a trading volume of 1,412,491 shares. Spirit AeroSystems Holdings has a 52-week low of $15.80 and a 52-week high of $34.47. The stock’s 50-day moving average is $32.80 and its 200-day moving average is $26.56. The company has a market cap of $4.874 billion and a P/E ratio of 188.18.
Spirit AeroSystems Holdings (NYSE:SPR) last released its earnings data on Friday, November 1st. The company reported $0.77 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.60 by $0.17. The company had revenue of $1.50 million for the quarter, compared to the consensus estimate of $1.51 million. During the same quarter in the previous year, the company posted ($0.94) earnings per share. The company’s revenue for the quarter was up 10.2% on a year-over-year basis. On average, analysts predict that Spirit AeroSystems Holdings will post $0.49 earnings per share for the current fiscal year.
A number of other analysts have also recently weighed in on SPR. Analysts at Barclays raised their price target on shares of Spirit AeroSystems Holdings from $33.00 to $44.00 in a research note to investors on Wednesday, December 18th. They now have an “overweight” rating on the stock. Separately, analysts at Citigroup Inc. initiated coverage on shares of Spirit AeroSystems Holdings in a research note to investors on Thursday, December 5th. They set a “buy” rating and a $39.00 price target on the stock. Finally, analysts at Canaccord Genuity upgraded shares of Spirit AeroSystems Holdings from a “hold” rating to a “buy” rating in a research note to investors on Thursday, December 5th. They now have a $38.00 price target on the stock, up previously from $28.00. Twelve analysts have rated the stock with a hold rating and five have assigned a buy rating to the company’s stock. Spirit AeroSystems Holdings presently has an average rating of “Hold” and an average price target of $29.19.
Spirit AeroSystems Holdings, Inc (NYSE:SPR) is an independent non- original equipment manufacturer (OEM) aircraft parts designers and manufacturers of commercial aerostructures.
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