How Spirit AeroSystems Is Caught Between Boeing And Airbus Tactics

Spirit AeroSystems Holdings Inc SPR is a key supplier for both Boeing Co BA and Airbus SE EADSY.

While an acquisition by Boeing is "at least partially baked into the stock," there is uncertainty around the timing, according to Benchmark.

The Spirit AeroSystems Holdings Analyst: Josh Sullivan downgraded the rating for Spirit AeroSystems Holdings from Buy to Hold.

The Spirit AeroSystems Holdings Thesis: The uncertainties around the timing and execution of the company rejoining Boeing stems from the ongoing production issues with 737-MAX and 787, Sullivan said in the upgrade note.

Check out other analyst stock ratings.

Boeing's own complex issues and "mixed Airbus overtures on acquiring related SPR assets" add to the uncertainty, the analyst stated.

"SPR's Airbus-related assets are running at a loss, and Airbus is in no mood to help Boeing with a premium offer," Sullivan wrote. He added, however, Airbus "playing chicken with manufacturing assets in a period of increased safety focus seems ultimately out of place, particularly given Congressional commentary this week."

While Boeing needs to reacquire Spirit AeroSystems to improve overall quality, Airbus's tactics could give Boeing "cause for delay," the analyst further said.

SPR Price Action: Shares of Spirit AeroSystems Holdings were up 1% to $31.45 at the time of publication on Thursday.

Read Next: What’s Going On With Neurological Disease-Focused Trevena On Thursday?

Photo: Duch via Wikimedia Creative Commons