Bombardier Inc. T.BBD.A

Alternate Symbol(s): BDRPF | T.BBD.PR.B | BDRXF | T.BBD.PR.C | T.BBD.PR.D | BOMBF | BDRAF | T.BBD.B | BDRBF

Industrials Aerospace & Defense

Bombardier Inc. is a Canada-based manufacturer of business aircraft with a global network of service centers. The Company is focused on designing, manufacturing and servicing business jets. The Company has a worldwide fleet of more than 5,000 aircraft in service with a variety of multinational corporations, charter and fractional ownership providers, governments and private individuals. It operates aerostructure, assembly and completion facilities in Canada, the United States and Mexico. Its robust customer support network services the Learjet, Challenger and Global families of aircraft, and includes facilities in strategic locations in the United States and Canada, as well as in the United Kingdom, Germany, France, Switzerland, Austria, the United Arab Emirates, Singapore, China and Australia. The Company's jets include Challenger 350, Challenger 3500, Challenger 650, Global 5500, Global 6500, Global 7500 and Global 8000.

TSX:BBD.A - Post by User

Bombardier Inc. > National Bank: 1,75$

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Comment by flamingogoldon Jul 20, 2021 6:46pm

300 Views

Post# 33579300

RE:National Bank: 1,75$

Very interesting read, an admission of eating crow!

lb1temporary wrote: After a joke like upgrade at 1$ a few days ago, they revised thier target at 1,75$. Usefull to read it.

Raised to Outperform from Sector Perform

Bombardier shares have frankly outperformed our expectations as we believed the market would demand more evidence of progress towards the company’s profitability and cash flow targets before a significant move higher. While we too would prefer to see more progress on margin improvement, we nevertheless concede that the company is making progress that is well-supported by improving end market conditions. We see meaningful potential upside for the stock even if results fall short of the targeted $1.5 billion in EBITDA in 2025. As such, we are raising our rating on Bombardier to Outperform from Sector Perform. Our new target is C$1.75, up from C$1.00 previously.

Very positive trends in the business jet market

The key driver of our upgrade is the ongoing strengthening in the business jet market that we believe will support strong new jet order activity in the coming quarters for Bombardier. Of note, according to the latest weekly report from WINGX, global business jet flights in the first 12 days of July were up 11% over the same period in 2019 and up 40% versus last year. Major fractional jet operators like NetJets and Flexjet are also reporting unprecedented levels of demand.

Balance sheet less of a concern

Bombardier continues to take steps to re-pay debt and de-risk the balance sheet most recently by issuing $1.2 billion of new senior notes that mature in 2026, with the funds used to re-pay nearer-term maturities. Bombardier's balance sheet is still highly levered, but with a path to positive free cash flow, liquidity concerns have been alleviated.

Q2/21 expectations

Bombardier is scheduled to release its Q2 results on August 5th. Based on sources we track, we estimate Bombardier delivered 29 planes in Q2 versus our prior estimate for 25. We estimate Global 7500 deliveries were 12 versus our prior forecast for 8.