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Spirit AeroSystems (NYSE:SPR) is unlikely to see a premium in a potential sale to Boeing (NYSE: BA), according to a Truist analyst.
“At this stage it is unclear to us why BA would pay a premium to acquire SPR, should an agreement be reached to fruition,” Truist analyst Michael Ciarmoli wrote in a note Friday.
Ciarmoli estimated that if Spirit (SPR) were acquired by Boeing (BA) at about 9 times Truists’ 2025 EBITDA of $913 million, an enterprise value of $8.2 billion, which would equate to 30-31 dollars per share after netting Boeing (BA) debt and $1.4 billion. related liabilities.
Truist’s Ciarmoli, who has a hold rating and a $30 price target on Spirit (SPR), also pointed out that assets owned by SPR which supplies Airbus would likely be sold to Airbus (OTCPK:EADSY) or to a ‘other third party.
A potential “forced sale would be unlikely to achieve a premium valuation,” Ciarmoli wrote.
“We estimate that, assuming divestitures to non-BA entities represent ~$300 million of 2025E EBITDA, the implied takeout value for SPR shares would be reduced by ~$2.50/share for each round below 9x for the EV/ multiple EBITDA realized from a sale of these assets”, writes Ciarmoli.
Spirit Shares (SPR). earned 14% on Friday after the WSJ and Bloomberg reported that Boeing (BA) is in talks to acquire the aircraft fuselage supplier. Boeing fell 1.3%.