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 (NYSE: 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.
Latest Ratings for SPR
|Feb 2017||Standpoint Research||Downgrades||Buy||Hold|
|Jan 2017||SunTrust Robinson Humphrey||Initiates Coverage On||Hold|
|Jan 2017||Bank of America||Downgrades||Neutral||Underperform|
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