Analyst Actions: Bombardier Price Target Raised At Scotiaban  | Analyst Actions: Bombardier Price Target Raised At Scotiabank Ahead of Q4 Results |
08:26 AM EST, 02/10/2021 (MT Newswires) -- Bombardier Inc.'s (BBD-B.TO) most recent asset sales and the introduction of 2023 estimates at Scotiabank, led to a price target increase by analyst Konark Gupta.
He raised his outlook on Bombardier shares to $0.55 from $0.43, and said this partly reflects the company's first potential free cash flow generation since 2010 as a pure-play business jet manufacturer.
"While the stock has doubled off of depressed levels in November 2020 and is trading through our revised target, we maintain out Sector Perform rating," Gupta said in a note to clients.
"We prefer to wait for a comprehensive business plan from the new leadership team before taking a more bullish or bearish stance because even a small change in our assumptions could have a material impact on valuation," the analyst said.
Bombardier will report fourth quarter results on February 11.
Gupta said the company's guidance will be more important than the results, "as we believe the stock's path from here depends on potential free cash flow power, deleveraging and, above all, execution."