UPDATE: Credit Suisse Downgrades Spirit AeroSystems Holdings to Neutral, Lowers PT

In a report published Friday, Credit Suisse downgraded its rating on Spirit AeroSystems Holdings SPR from Outperform to Neutral, and lowered its price target from $30.00 to $17.50. Credit Suisse noted, “SPR lost a third of its market cap today after announcing a massive $590M charge on a cluster of development programs, nearly all of it impairing future cash flow. We previously anticipated a charge of ~$35M to $120M (~$0.17-$0.58), which was greater than consensus, but primarily non-cash. Thus today's much larger cash charge caught everyone by surprise and erased any recently-found confidence in SPR's program assumptions. Note, this is the first time SPR has recognized a forward-looking forward loss, which means the cash impairment occurs on future deliveries while the EPS impact is immediate.” Spirit AeroSystems Holdings closed on Thursday at $21.66.