National Bank OP 65$ Maintain OP; target adjusted to $65.00
We maintain our Outperform rating on Bombardier shares and our new target is $65.00 following the share consolidation (was $2.65). Our positive view on the stock is supported by strong end market conditions in the business jet segment. Furthermore, we believe Bombardier will continue to report improved margins and cash flow in the coming years. 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$86.48. We then discount this target by 10%/year to 2022 to arrive at a target of C$64.97, which we round to C$65.00.
Figure 1: Target price calculation NBF EBITDA forecast in 2025
Target multiple
Enterprise value
minus projected 2025 net debt Equity value
Per share (C$)
Discounted to 2022 @ 10% / year
Source: NBF
$1,335 8.5x $11,351 $4,783 $6,568 $86.48 $64.97
Bombardier Inc.
NBCFM Research | June 13, 2022