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Bombardier Inc. T.BBD.A

Alternate Symbol(s):  BDRPF | T.BBD.PR.B | BDRXF | T.BBD.PR.C | T.BBD.PR.D | BOMBF | BDRAF | T.BBD.B | BDRBF

Bombardier Inc. is a Canada-based manufacturer of business aircraft with a global network of service centers. The Company is focused on designing, manufacturing and servicing business jets. The Company has a worldwide fleet of more than 5,000 aircraft in service with a variety of multinational corporations, charter and fractional ownership providers, governments and private individuals. It operates aerostructure, assembly and completion facilities in Canada, the United States and Mexico. Its robust customer support network services the Learjet, Challenger and Global families of aircraft, and includes facilities in strategic locations in the United States and Canada, as well as in the United Kingdom, Germany, France, Switzerland, Austria, the United Arab Emirates, Singapore, China and Australia. The Company's jets include Challenger 350, Challenger 3500, Challenger 650, Global 5500, Global 6500, Global 7500 and Global 8000.


TSX:BBD.A - Post by User

Comment by PabloLafortuneon Feb 15, 2023 7:00pm
191 Views
Post# 35288696

RE:Why is this stock soaring now?

RE:Why is this stock soaring now?My ballpark is $400MM FCF (they already said $250MM+ the $125MM RCV which is a balance sheet item) go forward which at 15x P/E translates to a $60 share price. Management has an excellent track record of exceeding expectations and the mgmt bench just got deeper. Backlog could drop but that won't affect operating cashflow/P&L plus they have reserves for that (its why they keep so much cash on hand + line of credit).  And knowing EM there is probably upside from new programs but we don't know yet (I guess that's why they're going to have the investor conference) what that could be. Moreover under normal circumstances, the $400MM goes towards debt repayment which saves $30MM and translates into another 10% per year of share price value. So I'd say the downside is limited and by virtue of that, on the balance of probabilities the upside is greater than the downside which in my absolutely amateur opinion, is a buy signal (yet I'm not buying - that's because of my opportunity cost).
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