Truist analyst estimates over 40% of revenue at risk

  • Spirit AeroSystems’ stock is falling due to the grounding of Boeing’s 737 Max 9 planes
  • Truist analyst estimates that the Max accounts for over 40% of Spirit AeroSystems’ revenue this year
  • Other commercial aerospace suppliers with exposure to the 737 Max 9 are also affected
  • Spirit AeroSystems’ stock dropped 8.1% in morning trading
  • Boeing’s stock fell 6.8% as a result of the grounding
  • Several other companies will be hurt by the Max’s grounding
  • FTAI Aviation Ltd. could benefit from airlines looking to lease narrow-body aircraft

Shares of Spirit AeroSystems Holdings Inc. took a dive as investors reacted to the grounding of Boeing’s 737 Max 9 planes. Truist analyst Michael Ciarmoli estimates that the Max accounts for more than 40% of Spirit AeroSystems’ revenue this year. The grounding also affected other commercial aerospace suppliers with exposure to the 737 Max 9. Spirit AeroSystems’ stock dropped 8.1% in morning trading, while Boeing’s stock fell 6.8%. Several other companies, including Astronics Corp., Triumph Group Inc., and Howmet Aerospace Inc., will also be hurt by the Max’s grounding. On the other hand, FTAI Aviation Ltd. could benefit as airlines look to lease narrow-body aircraft to replace the grounded 737s.

Public Companies: Spirit AeroSystems Holdings Inc. (SPR), Boeing Co. (BA), Astronics Corp. (ATRO), Triumph Group Inc. (TGI), Howmet Aerospace Inc. (HWM), Ducommun Inc. (DCO), Hexcel Corp. (HXL), Albany International Corp. (AIN), Woodward Inc. (WWD), RBC Bearings Inc. (RBC), Barnes Group Inc. (B), Curtiss-Wright Corp. (CW), Moog Inc. (MOG.A), FTAI Aviation Ltd. (FTAI)
Private Companies:
Key People: Michael Ciarmoli (Truist analyst), Josh Sullivan (Benchmark analyst)

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Factuality Level: 7
Justification: The article provides information about the drop in shares of Spirit AeroSystems Holdings Inc. due to its involvement in the grounding of Boeing Co.’s 737 Max 9 planes. It also mentions the impact on other commercial aerospace suppliers. The article includes quotes from an analyst and provides details about the revenue exposure of various companies. However, it lacks in-depth analysis and does not provide a balanced perspective on the issue.

Noise Level: 3
Justification: The article provides relevant information about the impact of the grounding of Boeing’s 737 Max 9 planes on Spirit AeroSystems and other commercial aerospace suppliers. It includes details about the stock performance of these companies and their revenue exposure to the 737 Max. However, the article lacks in-depth analysis, scientific rigor, and actionable insights. It mainly focuses on the stock market impact and does not explore the consequences of the grounding on other stakeholders or potential solutions to the issue.

Financial Relevance: Yes
Financial Markets Impacted: Shares of Spirit AeroSystems Holdings Inc. and other commercial aerospace suppliers with exposures to the Boeing 737 Max 9.

Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: The article discusses the impact of the grounding of Boeing Co.’s 737 Max 9 planes on the shares of Spirit AeroSystems Holdings Inc. and other aerospace suppliers. While this event has financial implications for the companies involved, it does not describe an extreme event.

Reported publicly: www.marketwatch.com