Spirit AeroSystems price target raised to $21 from $18 at BofA

BofA raised the firm’s price target on Spirit AeroSystems (SPR) to $21 from $18 and keeps an Underperform rating on the shares. The firm sees the recent agreement with Boeing (BA) as a significant milestone for Spirit and expects repricing agreements with Airbus (EADSY) to follow suit and allow Spirit to turn the A350 and A220 programs profitable by mid-decade, the analyst tells investors. However, Spirit is “ultimately a 737 story” and the limited survivability of the program beyond mid-2030s puts significant pressure on free cash flow generation in the 2030s, the analyst argues.