After Spirit AeroSystems (SPR) announced a Memorandum of Agreement with Boeing (BA) that “enables greater collaboration to achieve improved quality and higher deliveries in the future,” Jefferies said the new contract terms have positive revenue implications in 2023-2025. The firm, which assesses the agreement from an incremental cash perspective, assuming 100% drop through on actual price and discounting deferred repayments at 10%, values the deal at $3 per Spirit share and keeps a Buy rating and $30 price target on the stock, which is up $3.89, or 23%, to $21.08 in early Wednesday trading.
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