RE:CIBC: A Neutral ratingMy view of CIBC and GS is they work for the competition, have for years. If I'm EM or BD, I would not give them the time of day. At least GS doesnt pretend (stab you in the front).
The situation of Bombardier is straightforward. Business jets is a good business and Bombardier is one of the best if not the best. And they are growing - revenue in first 3 quarters almost same as full year 5 years ago.
But there was and is a lot of swamp to drain mostly from the legacy businesses (see lawsuits and other assets and liabilities). And they had to spend to move out of Downsview and build up the service network (again legacy of underinvestment and cash rqmts).
And the debt. If they can generate serious cashflow the next quarter and in 2024/2025, they can bring it down to a more normal level and with proper P/E ratios and higher share price. But still a few IFs.
But IMO this $40-60 is the bottom, the top could - if all goes well - be $200 (the EV math alone from a $2B debt reduction is 60% sp uplift; $500M profit/FCF @ 10x P/E is $69) . So to have a $60 target as an analyst - remember that analysts are almost always bullish - says it all.
Btw, do yourself a favor if you own BBD and are with CIBC - get out of one or the other.