Spirit AeroSystems price target raised to $34 from $30 at Stifel

Stifel analyst Bert Subin raised the firm’s price target on Spirit AeroSystems (SPR) to $34 from $30 and keeps a Hold rating on the shares. The firm takes down its estimates for Spirit in conjunction with Boeing (BA) comments as these would seem to indicate a slower pace of deliveries from Spirit to Boeing. However, valuation is likely to divorce from the fundamental outlook and be more based, at least in the near-term, on the potential for a buyout by Boeing, Stifel argues. Comments on Wednesday by the Boeing CFO would indicate those negotiations are progressing, and the firm awaits more info on a potential Airbus (EADSY) business separation, how certain defense programs would be viewed under the Boeing umbrella, and what a takeout price could look like as management noted they would not pay for this acquisition, should it happen, with equity. Stifel views $34 as a reasonable potential buyout price.