Last Updated: 19 Sep 2024
Executive Summary
Spirit Aerosystems Holdings Inc. (SPR) is a leading manufacturer of commercial aerostructures. Despite facing challenges in recent years, the company's financial performance has shown signs of improvement. The latest stock price of $32.93 suggests potential upside, supported by a positive analyst rating and a favorable long-term outlook.
Company Overview
Spirit Aerosystems designs and manufactures aerostructures for commercial aircraft, including fuselages, wings, and nacelles. The company has a global presence with operations in the United States, Europe, and Asia. Key customers include Boeing, Airbus, and Bombardier.
Fundamental Analysis
Revenue: Revenue for the trailing twelve months (TTM) was $6.45 billion, representing a 9.3% increase year-over-year.
Earnings: The company reported a net loss of $1.00 billion for the TTM, with a diluted EPS of -$10.01.
Margins: Profit and operating margins remain negative, indicating ongoing challenges in cost control.
Balance Sheet: Spirit Aerosystems has a negative book value of -$13.01 and a high level of debt.
Valuation: The company trades at a forward PE of 23.31, which is below the industry average.
Technical Analysis
Trend: The stock is currently trading below its 50-day and 200-day moving averages, indicating a bearish trend.
Support and Resistance: Key support levels are at $30 and $28, while resistance levels are at $35 and $37.
Momentum: Momentum indicators, such as the RSI and MACD, are showing signs of weakness.
Short Term Outlook
In the short term, SPR may face continued pressure due to macroeconomic headwinds and ongoing supply chain disruptions. The stock could test its support levels at $30 and $28. However, a positive earnings surprise or a favorable industry outlook could provide some upside potential.
Long Term Outlook
The long-term outlook for SPR is more favorable. The company is expected to benefit from the recovery in the commercial aviation industry. Increased aircraft production and demand for new aerostructures should drive revenue growth. Additionally, the company's cost-cutting initiatives and focus on efficiency could improve margins over time.
Analyst Recommendations
Analysts have a mixed view on SPR. Out of 18 analysts, 1 rates the stock as a buy, 17 rate it as a hold, and none rate it as a strong buy, sell, or strong sell. The median analyst target price is $35.65, implying a potential upside of 8.3%.
Conclusion
Spirit Aerosystems Holdings Inc. is a company with a strong competitive position in the commercial aviation industry. While the company faces challenges in the short term, its long-term outlook remains positive. The current stock price presents a potential buying opportunity for investors with a long-term horizon.
