RE:vista jet ....une tempte dans un verre d'eau?.....et cibc c'est pas un grand estimateur de bbd
08:10 AM EST, 01/24/2024 (MT Newswires) -- Concerns relating to VistaJet and its negative impact on Bombardier Inc. (BBD-B.TO) may be overdone, CIBC Capital Markets said.
CIBC analyst Kevin Kim said Bombardier shares have declined 8% so far in 2023, after falling 6.7% on Monday, on concerns that fleet operator VistaJet could begin selling its fleet due to financial pressures.
Kim said VistaJet's fleet is made up of many BBD jets, so this could negatively impact the Montreal-based business jet manufacturer's new aircraft sales.
"We are of the opinion that the risk of VistaJet aircraft coming to market and cannibalizing BBD sales may not be as significant as feared," the analyst said in a note to clients.
Kim maintained a Neutral rating and $60 price target on BBD.
"We looked at the BBD aircraft type owned by VistaJet and observed that the fleet operator's utilization of these assets over the past 12 months is relatively high compared to its peer groups," the analyst said.
"In addition, we would point to the business aviation industry as still benefitting from good demand fundamentals today even if activity is plateauing," Kim said.
(MT Newswires covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www.mtnewswires.com/contact-us)