On Friday, Baird adjusted its stance on Spirit AeroSystems shares (NYSE:SPR) stock, downgrading from Outperform to Neutral. The shift in rating follows the announcement of Boeing (NYSE:BA)'s agreement to purchase Spirit AeroSystems in an all-stock deal valued at $37.25 per share. This acquisition price represents a 14% premium over the share price prior to last Monday.
The deal between Boeing and Spirit AeroSystems also entails the sale of Spirit's facilities in North Carolina and Belfast, Ireland, contributing an additional $1.00 per share to the offer. The revised price target set by Baird now stands at $37.25, up from the previous target of $36.00.
The upgraded price target from Baird aligns with the terms of the acquisition agreement with Boeing, indicating the firm's view that the offer price is in line with market expectations. The $37.25 per share offer is seen as a fair reflection of Spirit AeroSystems' value in the context of this transaction.
Spirit AeroSystems' stock adjustment to Neutral from Outperform by Baird is a direct response to the acquisition news. The new rating and price target consider the agreed-upon terms of the Boeing deal and the anticipated completion of the transaction.
Investors and market watchers are now observing the unfolding of this acquisition, which has set a definitive value for Spirit AeroSystems shares based on the current agreement with Boeing. The transaction is a significant development for both companies and is likely to be closely monitored as it progresses towards completion.
In other recent news, Spirit AeroSystems is set to be acquired by Boeing in an all-stock transaction valued at $4.7 billion. This major development in the aerospace sector is expected to be finalized by mid-2025.
As part of the deal, Spirit AeroSystems shareholders will receive $37.25 per share in Boeing stock, with a collar agreement ensuring a specified range for the share exchange rate. Concurrently, Airbus plans to acquire certain loss-making operations from Spirit AeroSystems, marking significant shifts within the industry.
In relation to the Boeing deal, Wolfe Research downgraded Spirit AeroSystems stock from "Outperform" to "Peer Perform," while JPMorgan revised its rating from Overweight to Neutral, despite a slight increase in its price target. CFRA, a financial research firm, also raised its price target for Spirit AeroSystems shares to $37, maintaining a Hold rating.
Moreover, Deutsche Bank and TD Cowen have maintained their 'Buy' ratings on Boeing's stock, citing potential productivity enhancements from the proposed acquisition. As these developments unfold, the market will closely observe their impact on both Spirit AeroSystems and Boeing.
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