Senior plc Stock: Long-Term Upside On Aerospace Growth

Feb. 03, 2025 7:47 AM ETSenior plc (SNIRF) StockEADSF, EADSY, BA
(8min)

Summary

  • Senior plc stock remains a buy due to its strong market exposure in aerospace and energy, despite recent stock price drops caused by Boeing and Airbus production delays.
  • The stock price on the London Stock Exchange has recovered, driven by positive delivery numbers from Airbus and Boeing's labor agreement.
  • Revised EBITDA and free cash flow estimates reflect delayed production rates, but the stock still trades below peers' EV/EBITDA multiples, offering significant upside potential.
  • Despite near-term pressures, the long-term outlook for airplane production rates remains positive, supporting a buy rating with a 51% upside potential by 2025.
  • Looking for a helping hand in the market? Members of The Aerospace Forum get exclusive ideas and guidance to navigate any climate. Learn More »

SAS Scandinavian Airlines Airbus A320 arriving in Tromsö after flight from Stockholm

Photofex-AT/iStock Editorial via Getty Images

In September, I marked Senior plc (OTCPK:SNIRF) as a buy driven by airplane production rate increases in the upcoming years as well as the positioning of the company to capture opportunities in the

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This article was written by

18.52K Followers

Dhierin-Perkash Bechai is an aerospace, defense and airline analyst.

Dhierin runs the investing group The Aerospace Forum, whose goal is to discover investment opportunities in the aerospace, defense and airline industry. With a background in aerospace engineering, he provides analysis of a complex industry with significant growth prospects, and offers context to developments as they occur, describing how they might affect investment theses. His investing ideas are driven by data informed analysis. The investing group also provides direct access to data analytics monitors. Learn more.

Analyst’s Disclosure: I/we have a beneficial long position in the shares of BA, EADSF either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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