What's Going On With Boeing And Spirit Aerosystems Stocks?

Spirit Aerosystems Holdings, Inc. SPR shares are trading lower Tuesday after Boeing Company BA proposed to acquire the company in a deal valuing the supplier at approximately $35 per share.

The Details:

According to a Bloomberg report, Boeing has proposed to acquire Spirit Aerosystems in a deal valuing the supplier at approximately $35 per share. The proposal comes after months of negotiations and represents a shift from Boeing's previous all-cash offer. 

Boeing's revision of the payment terms is seen as a strategic move to alleviate some of the financial pressure on the company, though the final terms of the deal may include a small amount of cash. Boeing faces multiple federal investigations related to quality and safety, and the acquisition of Spirit would allow the company to regain control over the quality of its jetliner structures.

What Else?

Airbus, Boeing’s European competitor, saw its shares fall by more than 10% Tuesday, after the company revised its 2024 adjusted earnings lower approximately €5.5 billion (approximately $5.9 billion). The revision is a significant drop from the previous estimate of between €6.5 billion and €7 billion and is weighing on Boeing shares Tuesday.

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Will SPR Stock Go Up?

When trying to assess whether or not Spirit Aerosystems will trade higher from current levels, it's a good idea to take a look at analyst forecasts.

Wall Street analysts have an average 12-month price target of $34.75 on Spirit AeroSystems. The Street high target is currently at $40 and the Street low target is $31. Of all the analysts covering Spirit AeroSystems, one has positive ratings, 3 have neutral ratings and no one has negative ratings.

In the last month, one analyst has adjusted price targets. Here's a look at recent price target changes [Analyst Ratings]. Benzinga also tracks Wall Street's most accurate analysts. Check out how analysts covering Spirit AeroSystems Hldgs have performed in recent history.

Stocks don't move in a straight line. The average stock market return is approximately 10% per year. Spirit AeroSystems Holdings is 6.94% up year-to-date. The average analyst price target suggests the stock could have further upside ahead.

For a broad overview of everything you need to know about Spirit AeroSystems, visit here. If you want to go above and beyond, there's no better tool to help you do just that than Benzinga Pro. Start your free trial today.

SPR, BA Price Action: According to Benzinga Pro, Spirit Aerosystems shares are down 6.23% at $31.01 and Boeing shares are down 1.74% at $175.98 at the time of publication Tuesday.

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