RE:Nat. Bank: Target at 2,50$ ( maintain) I think that we have to tell that to a lot of brothers they are well informed...lol.
Have a good day guys! and GLTALongs!!
lb1temporary wrote: Part of an aerospace preview published yesterday.
Bombardier (Outperform, $2.50 target unchanged)
Bombardier was the best performing stock in our coverage universe in 2021, and we believe there is a solid backdrop for further upside in 2022:
Business jet market positive. As highlighted in this report, demand for new business jets is strong which could support modest rate increases for Bombardier this year and spur aftermarket revenue growth.
Margin and cash flow improvement ahead. As Bombardier comes further down the learning cost curve on its flagship Global 7500 program and benefits from cost reduction efforts, we expect margins to show improvement this year. We also forecast free cash flow will inflect positively in 2022, which would be a key milestone for Bombardier.
If Bombardier’s financial performance does indeed improve, we believe the stock will attract more institutional investor interest in 2022, which could be positive for the stock. We continue to base our valuation on our 2025 estimate, which assumes EBITDA of ~$1.3 billion (versus management’s $1.5 billion target) to which we apply an 8.5x EV/EBITDA multiple to arrive at a future target of C$3.35. We then discount this target by 10%/year to 2022 to arrive at a target of C$2.50 (rounded from C$2.52), which is unchanged
Our minor estimate adjustments are outlined below. Based on data we track, we believe Q4 business jet deliveries came in slightly better than our prior forecast (31 versus 30). Bombardier is scheduled to report its Q4/21 results on February 10 th .