CIBC: A Neutral ratingNote from Tempo1: This analysis is different than others. I didn't copy the details regarding the results, they are as positive than others analysts, but only the conclusion that is taken with a different approach. It put a target with the second part of the decade (2025-2028) finances in mind. Usually, the targets are for the 12-8 next months and I think that his approach is wrong and largely unusual.
Keeping Our Neutral Rating:
We acknowledge BBD is executing well and has line of sight to hitting its multi-year financial targets. That said, our Neutral rating reflects expectations that business jet deliveries will peak as we approach the middle of this decade. For BBD, as a pure-play business jet OEM, that is a sentiment headwind it will have to contend with. As well, we would expect the growth capex holiday BBD has benefited from as it has gone through its current restructuring will eventually come to an end. In our view, the potential reacceleration of capex in the back half of this decade also caps the valuation upside for BBD.