National Bank Financial - target price revised - from G&MNational Bank Financial analyst Cameron Doerksen thinks the outlook for the aerospace industry “remains positive,” which he expects will lead to a period of multiyear growth for Bombardier Inc. “Business aircraft flying activity in both the U.S. and Europe so far this year has been roughly consistent with last year and remains well ahead of 2019 levels. On a global basis, business aviation data provider, WingX, reports that business jet flights so far this year (through March) are slightly ahead of last year (up 0.3 per cent year-over-year) and are notably up 32.2 per cent compared to the same period in 2019. Solid OEM jet backlogs support higher business jet deliveries this year and in 2025, which is particularly positive for Bombardier, but also for HRX and CAE.” Maintaining his “outperform” recommendation for shares of all three companies, Mr. Doerksen adjusted his target prices. They are now:
* Bombardier Inc. to $95 from $94. The average on the Street is $76.
Analyst: “We maintain our Outperform rating on Bombardier shares ahead of Q1 results scheduled for release on April 25th . Stable trends in the broader business jet market and Bombardier’s solid backlog that provides for good visibility through 2025 give us confidence the company can achieve or at least come close to its financial targets for 2025. Bombardier will hold an investor day on May 1st at which we expect the company to provide an update on its financial targets including possibly providing some thoughts around the post-2025 period. We also expect some additional thoughts around capital allocation post-2025 as target leverage is achieved.”