Globe & Mail
Globe says Citi's Trent keeps Bombardier at "buy"
2023-07-21 08:36 ET - In the News
The Globe and Mail reports in Friday, July 21, edition that Citi analyst Stephen Trent is sticking with his "buy" recommendation for Bombardier. The Globe's David Leeder writes in the Eye On Equities column that Mr. Trent gave his share target a $3 boost to $67. Analysts on average target the Class B shares at $79.54. Mr. Trent believes there is "positive, long-term momentum" for Bombardier. Mr. Trent says in a note: "Large-cabin business jets saw important momentum during the pandemic, as commercial aviation significantly scaled back both international long-haul service and business/first class. As commercial airlines continue to recover from the pandemic, there's now less capacity per capita -- as well as fewer airlines in some regions, vs. what had been the case in 2019. As such, Citi continues to see longer-term tailwinds for large-cabin business jet sales and services, as international long-haul business/first class capacity per capita could take a very long time to recover. This large-cabin tailwind supports the above target multiple increase, with Citi now resetting Bombardier's EV/EBITDA fair value range from 7 to 7.75 times, to a new range of 7.75 to 8.25 times."