Boeing buying Spirit about supply chain, not accretion, says Barclays

Barclays analyst David Strauss says Boeing (BA) potentially buying Spirit AeroSystems (SPR), as reported on Friday, would not be be about when the deal it’s accretive, but rather having improved control over its supply chain and improving its relationship with its regulator. The firm does not think Boeing pursues Spirit without Federal Aviation Administration encouragement for Boeing to regain control of its critical supplier. Barclays estimates a Spirit equity value in the mid $30s in a potential deal. Boeing can do a deal with cash given its cash balance and ability to finance, although it would likely prefer to do some portion in equity given its leverage, the analyst tells investors in a research note.