Shares of the aircraft structural component supplier Spirit AeroSystems Holdings, Inc. (SPR) got a positive boost last week. The acceleration came on the heel of optimism about the aviation industry’s near-term prospects, which could begin a rapid recovery.
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Also in the last week, two important developments though not directly relevant to the SPR, also raised the sentiment of Spirit AeroSystems investors. Firstly there is hope about COVID-19 vaccines as hundreds of millions of doses of vaccines, that are currently under near-final testing phase, have already been reserved by leading countries. If authorized by regulators, the first half of next year will see the start of vaccination, which will ensure an increase in passenger air traffic.
On Tuesday, November 10, the second good news was about the possible resumption of Boeing 737 MAX Airliner flights. Access to flights ensures that not only aircraft that have been withdrawn from air can be returning to flights, but also re-launched assembly lines. Spirit AeroSystems, which is active in the manufacture of 737 MAX Airliners, will also be the beneficiary.
Taking those news into account, the rating for SPR shares was lifted from neutral to ‘above market’ by J. P. Morgan analyst Seth Seifman and the target price was raised from $26 to $36. According to the analyst, the worst is done and news about vaccinations makes aerospace companies’ shares “more appealing for investment.”
In the past week, the stock boosted 20.96 percent while monthly gain rose to 68.33 percent. Over the past 6 months, stock’s price surged 61.69 percent while year to date it is has been facing a drop of -55.58 percent.
The Spirit AeroSystems Holdings, Inc. (SPR) share at the November 16 session was worth $32.37 with a rise of 6.94 percent on the day which raised the market capitalization of the company to $3.10 billion.