RBC: ''....should be well-received.''Raises 2025 financial targets on solid progress
Our take: We expect BBD stock to react well to today's investor day press release. Notable is that Bombardier is significantly raising its 2025 financial targets, which come in well above expectations. With significantly higher revenue forecasts ($9B vs prior guide of $7.5B) the company is driving higher EBITDA and (of particular interest to investors) higher FCF. FCF, which had been previously set at >$500MM for 2025, has been increased an impressive 80% to $900MM. Leverage as a result is forecasted by mgmt to be in the 2.0x-2.5x range (from 3x prior). Overall a solid improvement in the 2025 guide, which should be well-received