from Globe & Trash A positive headline reported even though I am cynical of it
Globe says Bombardier boosted to "sector outperform"
Bombardier Inc (C:BBD)
Shares Issued 2,132,799,999
Last Close BBD.B 2/28/2022 $1.58
Monday February 28 2022 - In the News
The Globe and Mail reports in its Saturday, Feb. 26, edition that Bank of Nova Scotia analyst Konark Gupta has elevated his recommendation for Bombardier to "sector outperform" from "sector perform." The Globe's Darcy Keith writes that Mr. Gupta hiked his share target to $2.35 from $2. Bombardier posted solid progress on its four strategic priorities under a five-year plan that started last year. Mr. Gupta says his upgrade was in response to "increased confidence in management's ability to execute on most, if not all, of its 2025 goals." He cites a pullback since early October for supporting the upgrade. Mr. Gupta says in a note: "Our single biggest takeaway was that management still expects greater than $500-million in free cash flow in 2025 even if capex increases to $600-million vs. last year's assumption of $200-million. This $400-million capex cushion is what improves our confidence in free cash flow guidance given we were not convinced with Bombardier's $200-million capex assumption last year in light of rising competition from Gulfstream and Dassault. That said, we still prefer to wait for further margin execution before giving full credit to Bombardier's 20-per-cent EBITDA margin guidance."