Globe says Doerksen keeps Bombardier at "outperform"
2023-01-19 07:44 ET - In the News
The Globe and Mail reports in its Thursday edition that National Bank Financial analyst Cameron Doerksen has reaffirmed his "outperform" recommendation for Bombardier. The Globe's David Leeder writes that Mr. Doerksen gave his share target a $2 boost to $67. Analysts on average target the Class B shares at $66.86. Mr. Doerksen says better-than-expected preliminary fourth quarter 2022 results reinforce his positive view on Bombardier. Mr. Doerksen says in a note: "Bombardier has launched a new debt issue of $500-million due 2029, the proceeds of which will be used to fully repurchase the remaining $396-million of outstanding 2024 notes as well as $104-million notes due in 2025. Assuming the transactions proceed as planned, Bombardier will have no debt maturities until early 2025 (about $1.1-billion due), which we believe Bombardier could repay through existing liquidity and expected free cash flow generation. We forecast that Bombardier's leverage finished 2022 at 5.4 times and we forecast the ratio will fall to 2.8 times by 2025. ... We maintain our positive view on the stock supported by good visibility on revenue and earnings growth, a still healthy business jet market, and an improving leverage profile."