RE:Globe and MailThanks for posting this. A lot of Canadian retail investors read Global and Mail article for their research and investment prospects. G&M in the past have posted negative news about Bombardier, so this positive analysis will be received well as it shows G&M's shift towards positive.
Form001 wrote:
Globe says Citi's Trent maintains Bombardier at "buy"
2023-01-04 07:13 ET - In the News
The Globe and Mail reports in its Wednesday, Jan. 4, edition that Citi analyst Stephen Trent has reaffirmed his "buy" recommendation for Bombardier. The Globe's David Leeder writes in the Eye On Equities column that Mr. Trent's share target soared to $61 from $52. Analysts on average target the Class B shares at $60.93. Mr. Trent believes Bombardier's sales momentum and free cash flow results "should continue supporting a rerating in the shares." He says in a note: "On the back of its sixth straight quarter of positive free cash flow, Bombardier is also coming off of a good year. In 2022, its shares were up 20 per cent, vs. declines of 9 per cent for the TSX and 13 per cent for Air Canada. Ongoing momentum in services revenue and increasing interest in its jets from governmental customers, could provide EPS upside going forward, in our view. ... For Bombardier, Citi arrives at its $61/B-share target price for Bombardier based on seven times 2024 estimated EV/EBITDA vs. a six to seven times fair value range. ... Relative to its past, Bombardier now looks to be a much stronger, more stable company -- even as ongoing global supply chain issues could put some constraints on the sector's valuation."