BMO Capital analyst Fadi Chamoun reiterated a Buy rating on Bombardier (BDRBF – Research Report) yesterday and set a price target of C$135.00.
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Fadi Chamoun has given his Buy rating due to a combination of factors that highlight Bombardier’s solid financial footing and potential for future growth. Despite facing fewer deliveries and a less favorable aircraft mix in 2024, Bombardier met or exceeded its financial targets, which reflects strong execution and management’s ability to navigate supply chain challenges. The company demonstrated a notable improvement in profitability with adjusted EBIT surpassing expectations and a significant increase in aftermarket revenues, showcasing a robust business model and effective cost management.
Furthermore, Bombardier’s strong backlog, which provides revenue visibility for the coming years, supports its capacity to withstand market uncertainties, such as those posed by trade policies. The company’s leverage position, complemented by strong liquidity and increased profitability, enhances its resilience against potential adversities. Chamoun’s confidence in Bombardier’s improved valuation and strategic position, along with encouraging order activities, underscores the rationale behind the Buy rating, projecting a positive outlook for the company’s earnings and cash flow in the near future.
In another report released today, National Bank also maintained a Buy rating on the stock with a C$103.00 price target.
BDRBF’s price has also changed slightly for the past six months – from $61.030 to $55.790, which is a -8.59% drop .