Remember when it was looking like a comeback in the making for Boeing (NYSE:BA)? That should have meant good news for its suppliers like Spirit AeroSystems (NYSE:SPR) as well. However, for Spirit, the good news departed almost as quickly as it arrived. Investors sent Spirit on a nosedive just shy of 20% at the time of writing, as one of Spirit’s parts is mainly to blame.
Pick the best stocks and maximize your portfolio:
- Discover top-rated stocks from highly ranked analysts with Analyst Top Stocks!
- Easily identify outperforming stocks and invest smarter with Top Smart Score Stocks
More specifically, the problem is a fitting that connects the 737 Max’s vertical fin to the plane’s body. While this isn’t a problem for Boeing aircraft already in service, it is a problem for a range of undelivered aircraft that are being produced and in storage. That’s going to slow down the delivery of the 737 Max and likely delay Boeing’s recovery.
The problem with the fittings extends back to 2019. Spirit is currently working to fix the issue, and word from the company suggests that the problem may be fixed fairly soon. Still, the problem will likely have a lot of collateral damage, even if it’s repaired quickly. Spirit is the largest employer in Wichita, Kansas, and the 737 Max is its largest program.
Despite this round of troubles, SPR stock still enjoys some analyst support and is currently rated a Moderate Buy by analyst consensus. Furthermore, it offers 41.32% upside potential thanks to its average price target of $39.88.
