KeyBanc Starts Spirit AeroSystems (SPR) at Buy; Several Reasons to Like the Stock

KeyBanc initiates coverage on Spirit AeroSystems (NYSE: SPR) with a Buy. PT $25.00.

KeyBanc analyst says, "While SPR arguably carries a higher degree of risk than some of its commercial aerospace peers and is also generating below peer average financial metrics, we believe three key factors will positively influence the stock over the next 12-24 months: 1) SPR is highly levered to the commercial aerospace OE market, has minimal aftermarket exposure and virtually no military exposure; 2) SPR’s highly predictable, more profitable and lower risk legacy business is poised to benefit from increasing aircraft production rates and a strengthening OE up-cycle; and 3) the retirement of risk surrounding SPR’s growth platforms, specifically the Boeing 787, coupled with improvements in cash flow generation, should, in our view, help to remove volatility from financial performance on a go-forward basis."

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 $19.47 yesterday.

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