Analyst Ronald Epstein of Bank of America Securities maintained a Hold rating on CAE (CAE – Research Report), retaining the price target of C$45.00.
Ronald Epstein has given his Hold rating due to a combination of factors surrounding CAE’s current market position and future prospects. The recent increase in CAE’s equity stake in the SIMCOM joint venture to become the majority owner is seen positively, as it expands CAE’s presence in the business jet sector. This move, along with the extension of the exclusive training relationship with FlexJet, enhances CAE’s footprint in the aviation training market.
However, despite these positive developments, there are concerns about the U.S. market’s performance. While there is strong demand for business jets and international civil aviation growth, the U.S. market has shown signs of lagging, with recent downward earnings revisions from U.S. carriers contributing to uncertainty. This mixed outlook, with positive growth in certain areas but potential challenges in others, supports the decision to maintain a Hold rating on CAE’s stock.
According to TipRanks, Epstein is a 5-star analyst with an average return of 12.2% and a 59.50% success rate. Epstein covers the Industrials sector, focusing on stocks such as Embraer SA, Boeing, and GE Aerospace.
In another report released yesterday, Jefferies also maintained a Hold rating on the stock with a $25.00 price target.