Scotia upgrade 10:10 AM EST, 02/25/2022 (MT Newswires) -- Bombardier Inc. (BBD-B.TO) was upgraded to Sector Outperform from Sector Perform at Scotiabank.
Analyst Konark Gupta raised his target price on shares of the Montreal-based business jet manufacturer to $2.35 from $2.00.
Gupta said the improved outlook is a result of increased confidence in Bombardier's ability to execute on most, or all, of management's 2025 gials.
The analyst said the stock's decline of approximately 33% since early October supports his upgrade.
"We have turned positive on Bombardier's common shares...," Gupta said in a note to clients. "Although the company's balance sheet remains stretched, the leverage ratio has been improving significantly and should reach a more reasonable 3.0x level in 2025, driven by ongoing EBITDA growth and FCF generation."