By: Carter Copeland

With GKN now actively in play, SPR shareholders and management should be thinking creatively about what a potential tie-up might mean for the company’s long-term future. Since our launch ~4 months ago our Overweight recommendation on SPR has been largely based on the short-to-medium term tactical view that the adoption of new accounting rules (and subsequently tax reform) would drive positive earnings revisions for an inexpensive stock with significant exposure to our Positive Commercial Aerospace sector rating. Recent outperformance and the emergence of potential strategic optionality following the proposed acquisition of GKN by Melrose Industries, compelled us to take a step back and reexamine SPR’s longer-term options.

SPR  Report Here