Truist sees Spirit AeroSystem’s MOA with Boeing as a sign of progress

Truist analyst Michael Ciarmoli notes that on Wednesday morning, Spirit AeroSystems (SPR) announced that it had executed a Memorandum of Agreement with Boeing (BA) that established new shipset pricing on the 787 and 737, the release of liabilities and claims on certain aircraft programs, updated financing repayment terms, additional capital and customer advances, a change of control stipulations, and preliminary Q2 results. Overall, the firm views the news as a positive development notably around 787 pricing, amendment of advance repayment terms and the release of pending claims all of which should help the company in its upcoming refinancing of its 2025 debt. Truist does note a negative in the release was the disclosure of additional forward losses on the 787, A350, 737, and A320. The firm has a Hold rating on Spirit’s shares with a price target of $25.