2023-12-18 16:25:27 ET
Boeing ( NYSE: BA ) and key supplier Spirit AeroSystems ( NYSE: SPR ) are the top aerospace-industry stock picks for 2024, analysts at financial-services company Baird said Monday. The aviation companies are poised for gains as deliveries of commercial planes grow.
“2024 deliveries at Boeing Commercial Airplanes will be materially higher, supported by gradual liquidation of 737-Max and 787 in-storage aircraft,” Peter Arment, analyst at Baird, said in a December 18 report. “Boeing’s ( BA ) path to significantly higher free cash flow remains intact which continues to support upside in the Boeing ( BA ) stock.”
Boeing ( BA ) is expected to increase output of its best-selling 737-Max to 42 a month by the end of the first quarter of 2024, and to 47 a month later in the year. Output of the 787 Dreamliner is set to expand from five a month to seven a month by the middle of next year, Baird said. The firm has a $300 price target on Boeing ( BA ).
Spirit AeroSystems ( SPR ), which supplies the main sections of planes to companies including Boeing ( BA ) and Airbus ( OTCPK:EADSY ) ( OTCPK:EADSF ), is poised to see positive free cash flow with increased output.
Pat Shanahan, who this year was named chief executive of Spirit ( SPR ), “is delivering real progress in turning around Spirit ( SPR ).”
The company renegotiated its supplier agreement with Boeing ( BA ) to improve cash flow, and is aiming to have a new agreement with Airbus ( OTCPK:EADSY ) ( OTCPK:EADSF ) by February. Baird has a price target of $36 a share on Spirit ( SPR ).
Among its coverage of aerospace stocks, Baird raised its price target on Honeywell International ( NASDAQ: HON ) to $223 a share from $202 a share previously.
More on Boeing, Airbus SE, etc.
- Honeywell: Carrying On With Part Of Carrier
- Airbus Breaks Big Milestone Of $100 Billion In Airplane Orders
- Boeing: 2 Catalysts For 2024
- Turkish Airlines places order for 220 additional aircraft from Airbus
- Azul orders four more A330neo jets from Airbus to add flights
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Boeing, Spirit AeroSystems are top aerospace picks at Baird