Spirit AeroSystems downgraded to Neutral from Buy at Goldman Sachs

Goldman Sachs analyst Noah Poponak downgraded Spirit AeroSystems to Neutral from Buy with a price target of $30, down from $45, after its wider than expected Q2 earnings loss. It is increasingly looking like the firm’s expected trough new aircraft production rate will have less flow to Spirit AeroSystems’ margins and cash flow, the analyst tells investors in a research note. Labor, cost inflation, supply chain, and product quality are also adding up to substantially eat into the company’s unit economics, even though the firm sees significant long-term upside potential in the stock as volumes increase, Goldman Sachs added.