Nesbitt DowngradeBOMBARDIER INC. (BBD.B-TSX) Claude Proulx, CFA
Rating: Underperform â
Price: $2.55
Target: $2.75
2004A EPS: $0.08
2005E EPS: $0.00
2006E EPS: $0.14
Price & Target in CDN$, all other values in US$
Title: Paul Tellier Leaving; Stock Downgraded to Underperform
Event: Bombardier announced that the Board of Directors has created a new Office of the President that will regroup strategic and executive management responsibilities around the Executive Chairman of the Board and the Presidents of the Aerospace and Transportation groups, the Corporation's two main operating units. Mr. Paul Tellier will leave his position of President and Chief Executive Officer as well as director of the Corporation, effective immediately.
Impact: Negative.
Forecasts: Our forecasts are unchanged.
Valuation: At the current price, we believe Bombardier is relatively fully valued compared to its commercial aerospace peers on a next fiscal year EPS basis. Our target price is under review.
Recommendation: We are downgrading Bombardier shares to Underperform.