Citi analyst Jason Gursky says an all-stock takeover of Spirit AeroSystems (SPR) by Boeing (BA) likely makes the most sense as the success of both companies is and will remain closely tied. The firm keeps a Buy rating on Spirit with a $39 price target after the Wall Street Journal reported Friday that Boeing is in talks to buy Spirit and that the supplier is simultaneously looking to divest its Airbus operations. Such a move would likely be the final admission that Boeing’s two decade long outsourcing strategy has not yielded desired results, the analyst tells investors in a research note. Citi does not believe the potential deal would encounter material regulatory push back.
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