UPDATE: Citigroup Reiterates On Spirit AeroSystems Following Relatively Clean 1Q14

In a report published Tuesday, Citigroup analyst Jason Gursky reiterated a Buy rating on Spirit AeroSystems Holdings (NYSE: SPR), and raised the price target from $35.00 to $38.00.

In the report, Citigroup noted, “SPR printed a relatively clean 1Q14, the first without any segment charges in a few years. Op margins rose ~120 bps y/y & exceeded our estimates by 200 bps, with Wing turning in an impressive 12% margin seeing as it's where most of the troubled programs reside. Overall, the Q was a nice look into what SPR is capable of when they're executing well. The lack of a guidance boost after a solid beat prompted some head-scratching, but this management team is clearly staying conservative by setting expectations it know it can exceed. We liked the Q, we like management's focus & we continue to like SPR given strong underlying earning potential. PT to $38 on higher EPS estimates & richer valuation.”

Spirit AeroSystems closed on Monday at $33.43.