TD: Target to 73$ (from 68$)From Defence and aerospace preview report
Bombardier (Top Pick):
The increase in our target is due to an increase in delivery assumptions due to industry conditions, production plans, and other factors. For Q3/22, we forecast a 36% y/y increase in Adjusted EBITDA on strong EBITDA margin expansion. Results are expected to reflect declining costs on the Global 7500, aftermarket service growth, and other cost saving initiatives. While the Q3 book-tobill should remain healthy, we believe that investors should anticipate a moderation from the levels (>1.5x) of recent quarters.