A little dose of positive thinkingNote from Tempo1: I had a negative sentyiment about the massive Cessna order. I tought that it means that a formidable large competitor is emerging. Read the opinion of RBC:
Connecting The Dots: BBD flash read-through – NetJets signs agreement for up to 1500 Cessna jets
Outperform | Price Target CAD 104.00
Sentiment: Positive
Our view
Textron today announced an agreement with NetJets, where the operator can purchase up to 1,500 additional Cessna Citation business jets over the next 15 years. We view the announcement as positive for BBD as the magnitude and duration of the agreement highlight the structurally elevated demand outlook for bizjets. Key is that the Global family is NetJet's large cabin longrange OEM of choice and that BBD is out of the light and midsize segments, where Cessna has its focus. We note that September bizjet activity is currently ~19% above 2019 levels (WingX) and expect this to persist driving higher aftermarket services revenues and profitability. We expect the company to complete two-thirds of its full year deliveries in the 2H which should translate into robust FCF generation, in our view. We continue to view BBD as one of our top ideas and see the shares attractively valued trading at a 45% discount to peers.