“Judicious Addition”; Bombardier (TSE:BBD.B) Gains With Deliveries

Back in late April, things were not looking great for aircraft manufacturer Bombardier (TSE:BBD.B). The private jet market looked to be going down in flames, powered by tariff troubles and a general level of economic uncertainty that had some throwing salt in the direction of their checkbooks. But new reports suggest Bombardier is on a good run, and investors took heart, driving shares up over 2.5% in Friday morning’s trading.

The first big move came from Saab (SAABF), who put in an order for two Global 6500 aircraft. The Global 6500 is a powerhouse in private jet circles, offering a top speed of 956 km/h—a shade over 594 miles per hour for those who don’t speak metric—and a total range of 12,223 kilometers, or a little under 7,600 miles, within spitting distance of a third of the way around the planet. This represents “…a significant advantage to governments and militaries,” reports noted, and thus opens up some substantial new opportunities.

What Saab will be doing with these aircraft was not stated, but given that Bombardier Defense tends to focus on “…unmet needs in urgent humanitarian assistance, head of state transportation, maritime patrol and search and rescue…” it becomes fairly likely that one of these will be the likely outcome. Or, perhaps, just as a way to get Saab’s top brass from one place to another extremely rapidly.

Plane Delivered

Meanwhile, Bombardier also had a bit of good news in a recent delivery to a Saudi Arabian company. Aloula Aviation, an airline company in the country, landed the first of three Challenger 3500 aircraft. This was actually the first time that a Bombardier Challenger 3500 had been registered in Saudi Arabia, reports noted.

The plane has sufficient range and speed to comfortably make flights from Saudi Arabia to New Delhi, Paris, and Geneva. And, with top-notch reliability as well as the widest cabin in its class, the end result was a plane regarded as a “…judicious addition to Aloula Aviation’s fleet.”

Is Bombardier Stock a Good Buy?

Turning to Wall Street, analysts have a Moderate Buy consensus rating on TSE:BBD.B stock based on five Buys and one Hold assigned in the past three months, as indicated by the graphic below. After a 19.03% rally in its share price over the past year, the average BBD.B price target of C$120.99 per share implies 10.71% upside potential.

See more TSE:BBD.B analyst ratings

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