Fadi Chamoun, an analyst from BMO Capital, reiterated the Buy rating on Bombardier (BDRBF – Research Report). The associated price target remains the same with C$135.00.
Fadi Chamoun has given his Buy rating due to a combination of factors that indicate a positive outlook for Bombardier. The meeting with Bombardier’s senior leadership highlighted a disconnect between the company’s valuation and its strong underlying fundamentals. Despite recent volatility related to tariff risks, the demand for business jets remains robust, with strong flight activities and a decline in used aircraft inventories.
Furthermore, Bombardier’s supply chain, while challenged, is stable enough to support the company’s guidance for aircraft deliveries. The company is not currently affected by tariffs under USMCA exemptions, and it has strategies in place to mitigate potential impacts if tariffs are imposed. Additionally, Bombardier’s cost restructuring and production maturity, particularly in the Global 7500 program, alongside efforts to reduce debt and interest costs, are expected to significantly enhance earnings and cash flow in the next few years.
In another report released on March 24, CIBC also maintained a Buy rating on the stock with a C$110.00 price target.