Spirit AeroSystems downgraded to Market Perform from Outperform at Bernstein

Bernstein downgraded Spirit AeroSystems to Market Perform from Outperform with a price target of $38, down from $46. The analyst reduced the company’s outlook for margins and cash flow, citing concerns regarding its operational performance. Spirit’s valuation has been very inexpensive based on long-term cash flow even though its balance sheet position has been challenging, the analyst tells investors in a research note. The company has had operational issues on the MAX, but these issues appear to now extend across all of its commercial programs and it has backed off of its long-term 16.5% margin guidance, contends the firm.