CAE Inc T.CAE

Alternate Symbol(s): CAE

Industrials Aerospace & Defense

CAE Inc. is a technology company. It operates in two segments: Civil Aviation and Defense and Security. The Civil Aviation training segment provides comprehensive training solutions for flight, cabin, maintenance and ground personnel in commercial, business and helicopter aviation, a complete range of flight simulation training devices, ab initio pilot training and crew sourcing services, as well as aircraft flight operations solutions. It manages approximately 324 full-flight simulators. Its training systems includes CAE Real-time Insights and Standardized Evaluations (CAE Rise), which improves training through the integration of untapped flight and simulator data-driven insights into training. The Defense and Security segment provides platform-independent training and simulation solutions, preparing global defense and security forces for the mission ahead. In addition to solutions delivered to customer sites, it provides comprehensive training at its CAE global training centers.

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CAE Inc

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Post by retiredcfon Jul 12, 2022 8:32am

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Post# 34817384

RBC

July 11, 2022

CAE Inc.
Connecting The Dots: CAE flash read-through – Airbus releases Global Market Forecast

TSX: CAE | CAD 31.95 | Outperform | Price Target CAD 40.00

Sentiment: Neutral

Our view. Airbus today released its 20-year Global Market Forecast highlighting in summary that air traffic is expected to recover to 2019 levels between 2023 and 2025 and to grow at +3.6% annually out to 2041. Overall, Airbus' forecasts align with our own expectations and are therefore neutral to sentiment. Key for investors in CAE is that Airbus expects 39,500 new aircraft deliveries from 2022 to 2041, representing a mid-single-digit CAGR. We note that new aircraft deliveries are a rough proxy for pilot training demand, which we view as an important driver of growth and valuation for CAE long term. Our view is that CAE is well positioned to capitalize on these trends, reflecting its global footprint, long-term customer relationships and differentiated service offering, evidenced by CAE’s 30% market share. For further detail please see our CAE assuming coverage report here.

What happened? Airbus today released its Global Market Forecast. Airbus expects that air traffic will recover to 2019 levels between 2023 and 2025 and that demand for passenger traffic will grow annually by +3.6% (2019-2041 CAGR - Compound Annual Growth Rate) over the next 20 years.

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