Goldman Sachs Downgrades SPR To Neutral; Initiates ERJ At Buy

Goldman Sachs has downgraded Spirit AeroSystems (NYSE: SPR) to Neutral from Buy “as we simultaneously initiate Embraer (NYSE: ERJ) at Buy.”

“We also see a more balanced risk/reward for SPR relative to the rest of our Commercial Aerospace coverage in the near-to-medium term given continued 787 challenges, the related cash flow impact, and EPS volatility,” Goldman Sachs writes. “SPR shares are up 43.6% since we upgraded to Buy on 5/18/09, vs. the S&P up 34.6%. Shares are up 6.0% in the past 12 months vs. the S&P up 11.3%.”

Spirit AeroSystems closed Friday at $20.35; Embraer closed at $29.76.