Bullish indicating open at $55-$60, IPO prices at $37
Investing.com - UBS raised its price target on Spirit AeroSystems (NYSE:SPR) to $40.00 from $30.00 on Monday, while maintaining a Neutral rating on the stock. The new target aligns with the current trading price of $39.78, though InvestingPro data shows the stock has gained over 17% year-to-date.
The price target revision follows Spirit’s second-quarter 2025 results released on August 5, and updates regarding the company’s pending acquisition by Boeing (NYSE:BA).
Spirit now expects the Boeing acquisition to close in the fourth quarter of 2025, later than the previously anticipated mid-2025 timeframe.
UBS cited "more stability on the MAX program" as a key factor in its price target increase, moving from a 40% discount to the S&P 500 on EV/EBITDA to a 25% discount, which aligns with Spirit’s long-term average prior to COVID.
Spirit has also reached a definitive agreement with Airbus SE (OTC:EADSY) to transfer certain assets involved in Airbus aerostructures production to Airbus, which will occur concurrently with the Boeing deal closing.
In other recent news, Spirit AeroSystems Holdings, Inc. has announced an agreement to sell its Subang, Malaysia facility to Composites Technology Research Malaysia Sdn Bhd (CTRM) for $95.2 million. This transaction is part of Spirit’s ongoing merger activities with Boeing and a separate agreement with Airbus, and it is expected to close in the fourth quarter of 2025, pending necessary approvals. The UK’s Competition and Markets Authority has cleared Boeing’s acquisition of Spirit AeroSystems, allowing the merger to proceed without further investigation. Additionally, Boeing is set to take over Spirit AeroSystems’ facility in Belfast, Northern Ireland, after efforts to find a buyer were unsuccessful.
In a separate development, Spirit AeroSystems and Airbus have amended their agreement, resulting in Airbus providing an additional $94 million in financial support, bringing the total to $152 million. This support is specifically allocated for use in Airbus programs. Meanwhile, Spirit AeroSystems shares experienced a decline following the crash of an Air India Boeing 787-8 Dreamliner, though the cause of the crash remains under investigation. These recent developments highlight significant changes and challenges facing Spirit AeroSystems as it navigates its strategic partnerships and operational adjustments.
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