Globe says Bombardier seen now as a top stock to own
2022-08-08 07:39 ET - In the News
The Globe and Mail reports in its Saturday, Aug. 6, edition that RBC analyst Walter Spracklin says Bombardier's surprisingly strong second quarter results were a "materially positive event" for the company that will have "significantly positive longer-term valuation ramifications." The Globe's Darcy Keith writes in the Eye On Equities column that Mr. Spracklin was among several analysts to raise price targets on the business jet maker's stock following the well-received earnings on Thursday. Mr. Spracklin, however, was sounding particularly bullish, saying his conviction level has been elevated and he now thinks Bombardier is one of the top stocks to own. Bombardier's free cash flow in the second quarter of $341-million blew away the consensus estimate of $123-million. The company is guiding cash flow to come in at $515-million for the year as a whole, a 10-fold increase from prior estimates. RBC raised its share target to $41 from $32. Analysts on average target the shares at $50, down about $3 from last month. Demand for the company's jets has only accelerated with COVID and airport disruptions, pushing more wealthy customers to private aviation. Its backlog of work has grown 37 per cent in the past year to $14.7-billion.