Where is the reasoning in this reportIf this company will report 40% eps growth this year, and 15-20 in the next couple of years, what is this guy's problem. The low valuation is a mystery to me. I see nothing in his arguments to support his opinion.
IMO of course.
Tip Sheet
A daily conpendium of market analysis and insights
By CAROLINE ALPHONSO
Wednesday, February 6, 2002 – Print
Edition, Page B14
CAE remains uncertain In a note to clients, UBS Warburg Inc. analyst Peter Rozenberg said that although CAE Inc. (CAE-TSE) continues to report solid earnings from acquisitions, backlogs and higher margins, "management noted for the first time that a global decline in aerospace demand would result in a major work force reduction and lowered EPS guidance." The company is projecting earnings per share of 69 cents for fiscal 2002, a 40-per-cent jump from 49 cents last year. As a result, Mr. Rozenberg has reduced his forecast to 60 cents from 72 cents. Toronto-based CAE said this week that it will cut 500 jobs in response to a drop in orders for flight simulators. The company said the layoffs will result in a one-time charge of about $7-million in the current quarter.
Despite weak demand for flight simulators, other parts of CAE's business, including flight training and its military and marine division, are doing well, the company said. However, Mr. Rozenberg maintains his "hold" rating on the stock, with a 12-month target price of $10.50 a share. "We would revisit our outlook pending improved visibility in commercial and military aerospace," Mr. Rozenberg said. Shares of CAE closed yesterday on the Toronto Stock Exchange at $9.79, down 77 cents or 7.3 per cent. Shares have fallen 15.4 per cent so far this year, but are up from a 52-week low of $7.35 at the end of October.