Stifel analyst Bert W. Subin expressed his view on The Boeing Company’s reported proposition to acquire Spirit Aerosystems Holdings, Inc. ( SPR ) in a deal valuing the company at approximately $35 per share.

Subin says that if confirmed, the buyout aligns with their expectation that Boeing ( BA ) would aim to offer a price reflecting a reasonable premium compared to Spirit’s pre-announcement trading level (estimated around 20%, which would represent approximately 22%).

The analyst adds that they view the $35 per share offer as reasonable for both Boeing ( BA ) and Spirit AeroSystems ( SPR ) and would value Spirit AeroSystems ( SPR ) at around $4.1 billion.

Based on Boeing’s closing price of $179.10 on Monday, acquiring Spirit AeroSystems ( SPR ) at this price would require approximately 22.7 million shares of Boeing ( BA ) (~4% dilution), assuming an all-equity transaction, with potential refinancing or repayment of debt afterward, writes the analyst.

Related: Boeing Nears Deal To Reacquire Spirit AeroSystems In Wake Of Airbus Negotiations: Report

Apart from this, Airbus SE ( EADSF ) , Boeing’s European competitor, revised its 2024 adjusted earnings lower by roughly EUR5.5 billion (approximately $5.9 billion), which weighs down on Boeing ( BA ) shares today.

Truist analyst Michael Ciarmoli writes that they anticipated ongoing challenges for commercial aerospace OEMs this quarter.

However, with this downward revision and recent production delays at Boeing ( BA ), the analyst anticipates these factors to further amplify downward revisions throughout the supply chain.

Ciarmoli reaffirmed confidence in the long-term recovery of commercial aerospace OEMs, having thoroughly evaluated exposure across platforms and identified potential upside within the coverage universe.

Boeing ( BA ) stock has lost around 15% in the last 12 months. Investors can gain exposure to the stock via IShares U.S. Aerospace & Defense ETF ( ITA ) and Invesco Aerospace & Defense ETF ( PPA ) .

Price Action: BA shares are down 2.8% at $174.08 at the last check Tuesday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.