Motley Fool might just be right this time -last week article Bombardier takes pride in being the leading manufacturer of fine business jets. The two aircraft families of this $4.9 billion Canadian firm, Challenger and Global, are the most comprehensive in the industry today. The BBD stock price rose to as high as $73.78 on March 31, 2023, followed by spikes and dips the rest of the year.
At $49.91 per share (-6.20% year-to-date), Bombardier’s trailing one-year price return is 27.7%, while the overall return in 3 years is 232.7%. Based on market analysts’ 12-month average and high price targets, the stock’s upside potential is between 51.5% ($75.64) and 100.4% ($100.02).
The aircraft manufacturer incurred a net loss of $128 million in 2022 but made a turnaround in 2023. In the 12 months ending December 31, 2023, revenues grew 16% year-over-year to $8 billion, while net income reached $490 million. Notably, the order backlog at year-end was $14 billion.
Bombardier’s President and CEO, Eric Martel, said the company had solid financial performance last year after building on its momentum from the two previous years. He adds the company started 2024 in a strong position too. Bombardier’s refreshed portfolio consisted of medium and large business jets. They sold well because it aligned with market demand.
This year, the aircraft delivery guidance is 150 to 155 units from 138 in 2023. Management forecasts revenue growth of 5% to 7.5%, or $8.4 to $8.6 billion, and projects free cash flow from $100 to $400 million