TSX:BBD.A - Post Discussion
Post by
retiredcf on Sep 27, 2024 9:05am
RBC
September 26, 2024
Bombardier Inc.
Explores services partnership with Adani Group in India
TSX: BBD.B | CAD 97.34 | Outperform | Price Target CAD 133.00
Sentiment: Positive
Our view. We view the news of a potential aircraft services partnership with the Adani Group, a prominent infrastructure conglomerate in India, as a key positive for services expansion at Bombardier. Key is that India represents a high growth market, where Bombardier maintains a leading market share position in business jets. Expanding the services footprint in the region would allow the company to capture more of its aftermarket revenue and support growth longer term, aiding it in reaching 70% share of its aftermarket (currently ~50%) by 2030.
What happened? On Tuesday, Adani Group chairman Gautam Adani met Bombardier CEO Eric Martel and discussed partnership in aircraft services and the defence sector. Based on a post by Adani on social media, and picked up by media sites including the Economic Times, the dialogue focused on Aircraft Services, MRO, and the Defence sector. Adani Group has been actively expanding its presence in India’s defence and aviation sectors. Bombardier has not commented on the post.
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