Analysts at the firm also raised its price target to $50 from its previous $43, and cited valuation as the reason for the move in its research note.
RBC Capital added that it believes improvements on several of the company's airplanes would cause estimates for Spirit AeroSystems to rise.
Shares of the Wichita, KS-based Spirit AeroSystems closed at $40.98 at the end of Friday's trading session.
Spirit AeroSystems is an independent non-original equipment manufacturer holding company of aircraft parts designers and manufacturers of commercial aerostructures.
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 some important positives, 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, growth in earnings per share and largely solid financial position with reasonable debt levels by most measures. 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 1.1%. Since the same quarter one year prior, revenues rose by 12.6%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Powered by its strong earnings growth of 84.61% and other important driving factors, this stock has surged by 38.32% over the past year, outperforming the rise in the S&P 500 Index during the same period. Turning to the future, naturally, any stock can fall in a major bear market. However, in almost any other environment, the stock should continue to move higher despite the fact that it has already enjoyed nice gains 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 79.3% when compared to the same quarter one year prior, rising from $93.70 million to $168.00 million.
- 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 ($3.98 versus -$4.40).
- SPR's debt-to-equity ratio of 0.64 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 0.97 is weak.
- You can view the full analysis from the report here: SPR Ratings Report