Shares of aerostructure manufacturer Spirit AeroSystems (NYSE:SPR) slid in pre-market trading today. This comes after the FAA’s (Federal Aviation Administration) investigation indicated that the company had manufactured and initially installed the fuselage part on the Boeing (BA) 737 MAX 9 aircraft that suffered a blowout on Friday after its window panel dislodged mid-flight.
According to Reuters, since the installation process of the fuselage is complex, investigators are likely to examine potential flaws at Spirit’s fuselage plant in Kansas or Boeing’s factory near Seattle. Regulators grounded most Boeing 737 MAX 9 aircraft for safety checks after an Alaska Airlines (ALK) plane lost a door-replacement panel mid-flight.
The 737 MAX 9, Boeing’s largest single-aisle jet, often includes an optional extra door that is deactivated before delivery. Spirit builds fuselages with the special door assembly semi-rigged, complicating the investigation to ascertain if any flaw occurred during assembly. The FAA’s investigation will assess whether design or manufacturing contributed to the incident.
Is SPR Stock a Good Buy?
Analysts remain cautiously optimistic about SPR stock with a Moderate Buy consensus rating based on eight Buys, seven Holds, and one Sell. Over the past year, SPR stock has declined by more than 3%, and the average SPR price target of $31.13 implies a downside potential of 1.9% at current levels.
