The firm said it raised its rating on the company, which operates as a non-independent equipment manufacturer, aircraft parts designer, and manufacturer of commercial aerostructures, based on its belief Spirit is making "major progress" on the A350 aircraft.
Additionally, JPMorgan said that Spirit's third quarter "provided further evidence that the new management team at Spirit is turning the corner on performance."
"The core business has increasingly exhibited this for a few quarters now, and positive cumulative adjustments are starting to become more of a drumbeat while underlying cash flow backs it up," the firm noted.
Separately, TheStreet Ratings team rates SPIRIT AEROSYSTEMS HOLDINGS as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate SPIRIT AEROSYSTEMS HOLDINGS (SPR) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, increase in net income, good cash flow from operations and growth in earnings per share. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth came in higher than the industry average of 0.9%. Since the same quarter one year prior, revenues rose by 18.6%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Powered by its strong earnings growth of 168.70% and other important driving factors, this stock has surged by 47.00% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, SPR should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Aerospace & Defense industry. The net income increased by 168.5% when compared to the same quarter one year prior, rising from -$209.40 million to $143.40 million.
- Net operating cash flow has significantly increased by 175.54% to $164.50 million when compared to the same quarter last year. In addition, SPIRIT AEROSYSTEMS HOLDINGS has also vastly surpassed the industry average cash flow growth rate of -11.97%.
- SPIRIT AEROSYSTEMS HOLDINGS reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, SPIRIT AEROSYSTEMS HOLDINGS swung to a loss, reporting -$4.40 versus $0.25 in the prior year. This year, the market expects an improvement in earnings ($3.49 versus -$4.40).
- You can view the full analysis from the report here: SPR Ratings Report