UPDATE: Canaccord Genuity Upgrades Spirit AeroSystems on Increased Confidence in Improving Cash Flows
In a report published Thursday, Canaccord Genuity analyst Ken Herbert upgraded the rating on Spirit AeroSystems (NYSE: SPR) from Hold to Buy, and raised the price target from $28.00 to $38.00.
In the report, Canaccord Genuity noted, “We are upgrading our recommendation on SPR to BUY and increasing our price target to $38 after meeting with management in Wichita. Our confidence in the successful sale of the Tulsa operations is increased, and we increasingly believe new management is taking the necessary steps to de-risk the operations and improve cash flows and program execution. Granted there is still substantial risk associated with the A350, contract negotiations with Boeing, and the Tulsa sale. However, we believe the risk/reward is favorable and our confidence in management's strategic direction is increased.”
Spirit AeroSystems closed on Wednesday at $31.64.
© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.