UPDATE: Truist Securities Upgrades Spirit AeroSystems (SPR) to Buy

Truist Securities analyst Michael Ciarmoli upgraded Spirit AeroSystems (NYSE: SPR) from Hold to Buy with a price target of $76.00 (from $39.00).

The analyst comments "We are upgrading shares of SPR to BUY from HOLD and raising our PT to $76 from $39. Shares of SPR remain 57% below their 2018 all-time high and in our view boast the most favorable risk/reward profile among our upgrades. As the company has outsized exposure to the 737MAX (>50% of revenues pre-crisis) we expect it will be among the biggest beneficiaries in the aero supply chain as monthly production gradually increases. Moreover, the company’s key wide body programs (787 and A350) appear to be at trough and are positioned to grow at a 24% CAGR through 2024. We believe the combination of MAX rate increases and overhead absorption tied to wide body production increases should enable SPR to generate positive operating margins in 2022 while pushing above double-digit margins in 23/24, all of which we believe should lead to a return to positive FCF in 2023 and 6% conversion of revenue in 2024."

For an analyst ratings summary and ratings history on Spirit AeroSystems click here. For more ratings news on Spirit AeroSystems click here.

Shares of Spirit AeroSystems closed at $45.83 yesterday.

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