Bombardier Inc. T.BBD.A

Bombardier: The Strongest Business Jet Buy You Ever Saw

[Jacques4444]

Most amazing article read recently. If you have 1 article to read, thats the one. Explaining how is the ''15 ways'' to bolster results and marging.  Bombardier: The Strongest Business Jet Buy You Ever Saw (BDRAF) | Seeking Alpha My cherry picking: 

• Bombardier has impressively turned around with increased revenues, improved margins, and positive free cash flow, reducing debt by $4.5 billion.
• The company expects stable business jet deliveries for 2025, with revenue growth to over $9 billion and EBITDA of $1.625 billion, focusing on defense sales and aftermarket services.
• Growth drivers include larger body business jets, defense portfolio expansion, aftermarket sales growth, and margin improvements, aiming for a 2.0x-2.5x net leverage by 2025.
•  Interesting to note is that analysts are less upbeat on EBITDA with a consensus of $1.59 billion, but that would still indicate more than 15% year-on-year growth. 
• So, the defense market offers several hundreds of millions worth of growth opportunities, and it should be noted that those defense projects come with very strong margins for Bombardier.
• Apart from that, the company is also increasing prices in excess of inflation, which should bolster results and margins. 
• Bombardier has also stepped away from the light business jet segment and that might have been a good decision as that market is expected to shrink by half a percent between 2019 and 2030 while the medium and large business jet market will grow by 2.8% annually.
• So, the growth drivers are basically drivers that were already in play and those are a focus on larger body business jets, maturing margins on new jets, and growing the defense portfolio while the bigger aftermarket footprint will continue to add to the results.
• Furthermore, with a much cleaner balance sheet, the company can also refinance at a lower interest rate compared to years ago. 
• I am maintaining my price target of $81 (US = 111$ Can) per share for 2025 (the only point Im not agree, like Poirier from Desjardins, I m expecting around 145$ in the next 10 months and 165$ for next september, still predict 200$ 1st Q of 2026, WHY? because I think BBD will start to offer dividend and a bigger buyback plan as soon as december 2025 or late january 2026)

[BBDB859]

I have had many exchanges with Dhierin Bechai (the article writer) over the years regarding Bombardier, and I can honestly say that, he is one the fairest writers on Seeking Alpha regarding Bombardier. That's partially because I would always hold him accountable regarding our turnaround plans. That's why he's so in tune, to the previous management of PB & AB, and how their 5 year