SPR - Boeing Stock Has 45% Upside According to 1 Wall Street Analyst
2024-07-02 15:29:29 ET
Boeing's (NYSE: BA) deal to buy key supplier Spirit AeroSystems (NYSE: SPR) was warmly received by the market. It pleased a Jefferies analyst who reiterated a buy rating on the stock and a $270 price target, which implies a 45% upside to the current price over the next 12 months or so.
As previously noted , shoring up delivery rates by ensuring suppliers like Spirit (fuselages) can meet Boeing's intended production ramp is one of the three key things Boeing needs to do to put the stock back in recovery mode. The other two, according to the analyst, are to announce a new CEO and ditch the $10 billion in free cash flow in the 2025/2026 target.
The Spirit deal removes uncertainty, and the fact that it's an "all-stock" deal means Boeing won't use up precious cash on it. That's a major plus. The Jefferies analyst sees the deal's benefits as significant, as it alleviates a situation where Boeing was put under cost pressure by Spirit's inability to match Boeing's production rates.
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Boeing Stock Has 45% Upside, According to 1 Wall Street Analyst