RE:RE:RE:RE:RE:DESJARDINSI publish only the summaries of analysis but there the detailed explanation of Desjardins's Poirier about the 150$.
We see many catalysts ahead—stock could be worth US$153 in the long term. Putting aside the debt reduction, potential upward revision of 2025 targets and strong demand from bizjet operators discussed above, we continue to see a number of catalysts that could drive a valuation re-rating in the long term. First, Honeywell recently increased its forecast to 8,500 new bizjet deliveries worth US$274b from 2023–32, an increase of 15% for both deliveries (from 7,400) and expenditures vs the same 10-year forecasts a year ago. Second, BBD has significant exposure to high-net-worth individuals (62% of BBD’s customers) who have been less affected by the global economic slowdown compared with other consumers. Third, BBD has the ability to expand its defence business. President and CEO ric Martel highlighted at a conference earlier this year that defence is an interesting market
that could represent up to US$1.0b of revenue in the long term, although the company assumes only a small fraction of this number in its 2025 objectives (revenue of US$7.5b). Finally, looking at bizjet charters (which account for ~36% of all business flights; top 5 operators now control 35% of the private available commercial jet aircraft fleet), both Flexjet and flyExclusive have announced SPACs in the last month at rich valuations: Flexjet at 10.8x EV/FY1 EBITDA (12.5% EBITDA margin) and flyExclusive at 10.6x EV/FY2 EBITDA (12.2% EBITDA margin). This suggests some multiple expansion for BBD as it reduces its risk profile and continues to expand its manufacturing and servicing capacity. Assuming a 9.0x EV/EBITDA multiple in 2025 (see Exhibit 8), we conservatively estimate that BBD could be worth over C$150/share.
Poirier is very bullish with Bombardier, he could be right or wrong, let's see.
But putting aside his positive conclusions, we had to admit that he is one of those that best understands and details the outlook for Bombardier. Among other things, in last june, he was the first to highlight the major debt repayments that should occur before March 2023, among others thanks to the $400M freed up.