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The complex three-way deal announced late Sunday night to split Spirit AeroSystems between Boeing and Airbus was engineered by Spirit CEO Pat Shanahan.
Shares of Spirit Airlines Inc. SAVE dropped 0.82% to $3.62 Wednesday, on what proved to be an all-around mixed trading session for the stock market, with the NASDAQ Composite Index COMP rising 0.88% to 18,
It pleased a Jefferies analyst who reiterated a buy rating on the stock and a $270 price target, which implies a 45% upside to the current price over the next 12 months or so. As previously noted, shoring up delivery rates by ensuring suppliers like Spirit (fuselages) can meet Boeing's intended production ramp is one of the three key things Boeing needs to do to put the stock back in recovery mode.
'If we lose it, we lose it': Aviation supply chain worries about loss of defense work in Boeing deal
"It's kind of sad now that we could be negatively impacted by this. My optimism is high that it will not," Terry Karst of 3P Processing said.
Just four months after Boeing announced its intention to reacquire most of this critical supplier, Shanahan secured agreement through personal negotiations with the senior leadership of the two greatest rivals in the aviation world.
Boeing has announced that it will be buying back Spirit AeroSystems, one of the company's struggling suppliers. This move has led investors to speculate on who will be the next CEO of the planemaker.
As part of the deal, Airbus, the multinational aerospace company that is a top competitor to Boeing (NYSE: BA), will acquire the Spirit AeroSystems (NYSE: SPR) operation in Kinston at the North Carolina Global TransPark.
Boeing's acquisition of Spirit AeroSystems aims to bolster quality and oversight in the Boeing 737 MAX chain. Read more on how the deal also may help increase production rates.
Sen. Jerry Moran said he spoke with Lockheed Martin's CEO on Monday about work Spirit currently performs for the defense and aerospace giant in Wichita.