UPDATE: Auriga Reiterates Buy, Raises PT to $27.50 on Spirit AeroSystems

Auriga maintains its Buy rating on Spirit AeroSystems SPR and raises its target price to $27.50 from $25 to reflect strong commercial OEM backdrop. Auriga says, "As we turn the page into 2012, our price target increase reflects an 11x multiple of our 2013 estimate of $2.50, and reflects our optimism that a strong OEM production tailwind will pinpoint 2011 as the pivotal year for the company. More specifically, we look for a turn to positive cash flow and a descent from a peak year of development risk to serve as catalysts to carry the stock to our price target. Moreover, we find our valuation reasonable on other metrics as it suggests an EV / 2013 EBITDA of 7x, and a PEG ratio of 0.4x assuming a 25% three-year CAGR." SPR closed at $21.13 per share on Friday.