Citi's new target 2.20 Monday August 16 2021 - In the News
The Globe and Mail reports in its Saturday, Aug. 14, edition that Citi analyst Stephen Trent thinks the market "seems to have underestimated" Bombardier's ($1.65) earnings power. The Globe's David Leeder writes that Mr. Trent, in a research note released Friday, said an increase to the Montreal-based company's 2021 guidance provides "strong indication that the company can meet/exceed its operational cash flow targets." Mr. Trent says, "The Street might underappreciate the company's potential Global 7500 production learning curve improvements, while successive debt tenders seem to have reduced the company's debt costs and increased the average tenor of such liabilities." After incorporating Bombardier's expectation for higher jet deliveries into his financial estimates, Mr. Trent raised his share target to $2.20 from $1.20. Analysts on average target the Class B shares at $1.62. He says, "Against this backdrop, the shares' sharp, short-term rise might mean a transition into a share price consolidation period. As such, Citi maintains its 'Buy/High Risk' rating on Bombardier." The Globe reported on Aug. 7 that Desjardins had kept its rating on Bombardier at "hold." The shares could then be had for $1.73.