Here's Why Spirit AeroSystems' Stock Soared This Week
Shares in Spirit AeroSystems (NYSE: SPR) increased by slightly more than 30% in the week to noon ET Thursday, according to data provided by S&P Global Market Intelligence. The surge comes after Boeing (NYSE: BA) and Spirit entered into a memorandum of agreement (MoA) to collaborate better, hopefully resulting in both companies improving production.
The two companies are closely intertwined. Not only was Spirit formerly part of Boeing, but the company also manufactures fuselages for the 737 MAX and the 787 Dreamliner. In addition, Spirit's new CEO, Patrick Shanahan, is a 31-year Boeing veteran who also served as the Deputy Secretary of Defense under President Donald Trump.
Shanahan was appointed on Oct. 2 and wasted no time signing the MoA, which involves Boeing making a $100 million advance. The MoA also provides for Boeing to make further advances to help Spirit ensure the production of fuselages. At the same time, the agreement entails price reductions on the 737 fuselage after 2026, and price increases on the 787 fuselage.
Source Fool.com
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