Shares of Spirit Aerosystems (NYSE:SPR) are higher today amid whispers of a potential activist investor aiming to agitate for a sale to Boeing (NYSE:BA). According to a report by Activist Insight, a significant alteration in Spirit’s relationship with Boeing could be on the horizon, especially given that Boeing accounts for a whopping 80% of Spirit’s business. The report positions Spirit in the high-risk 83rd percentile of companies likely to face activist attention within the next nine months. This speculation has led to increased trader activity around Spirit’s stock.
This comes at a time when Spirit Aerosystems has experienced a decline in its shares after Boeing paused deliveries of some 737 Max planes due to incorrectly installed parts. Founded in 2005 as a spinoff from Boeing’s Wichita and Oklahoma operations, Spirit might now face significant changes under the scrutiny of an activist investor.
These could include selling non-core assets, refreshing its board, or potentially replacing CEO Tom Gentile. Interestingly, during the Q1 earnings conference call in May, Gentile was noncommittal when asked about the potential buyback of Wichita operations by Boeing.
Overall, Wall Street analysts have a consensus price target of $35.45 on SPR stock, implying almost 20% upside potential, as indicated by the graphic above.
