Spirit AeroSystems Holdings, Inc. (NYSE: SPR) concluded its recent trading session on an impressive note, surging by 4.96% to settle at a closing price of $22.21. This surge in the value of Spirit AeroSystems stock was driven by robust trading activity, with more than 7.63 million shares changing hands during the day. Notably, this notable upswing in SPR stock can be attributed to a favorable recommendation put forth by financial analysts.
On the day, a prominent financial institution, Deutsche Bank, elevated its recommendation for Spirit AeroSystems (SPR) stock from a “HOLD” status to a “BUY.” In addition to this shift in perspective, the analyst group also adjusted its target price for SPR stock, raising it from the previous $16 to an ambitious $30.
Furthermore, the stocks of Spirit AeroSystems, a key supplier for aerospace giant Boeing, experienced a substantial boost following the announcement of a production agreement between the two companies. This agreement was forged in response to quality-related delays that had been affecting deliveries.
Spirit AeroSystems unveiled a momentous declaration this week, disclosing that its offspring, Spirit AeroSystems Inc., has engaged in a Memorandum of Agreement (MoA) with The Boeing Company. The central objective of this accord is to cultivate an intensified synergy, culminating in elevated quality standards and heightened future delivery proficiency.
Joint teams will prioritize efforts in enhancing supply chain performance and resilience. Through this concerted endeavor to harmonize SPR’s production systems, a heightened level of market responsiveness and delivery assurance is anticipated. This agreement effectively bolsters the strategic partnership between Spirit AeroSystems and Boeing, underscoring their commitment to fulfilling operational obligations and meeting the expectations of the airline industry.
Under the terms of this agreement, Spirit AeroSystems will receive a more favorable price for near-term deliveries of components, including the forward fuselage, for the 787 Dreamliner. On the flip side, prices for 737 components are set to see reductions between 2026 and 2033. As a direct result of this arrangement, Spirit AeroSystems is poised to generate an additional $455 million in sales between 2023 and 2025.
However, projections indicate a decrease in Spirit’s revenues from 2026 to 2033, amounting to $265 million. Boeing has also committed to extending repayments on $180 million of financing from 2025 to 2027, and the aerospace company will inject an additional $100 million into tooling, which is vital for accommodating future increases in the production rates of the 787 and 737 aircraft.
