In a report released yesterday, Tim James from TD Cowen maintained a Buy rating on CAE, with a price target of C$46.00.
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Tim James has given his Buy rating due to a combination of factors that highlight CAE’s strong long-term potential in the aviation sector. The company has shown promising results, particularly in its Defense segment, suggesting that its fiscal year 2026 guidance might be conservative. This, coupled with a solid business franchise and potential for return on invested capital (ROIC) growth, positions CAE as a favorable investment.
Moreover, management’s strategic focus on enhancing operational efficiency and optimizing the company’s portfolio is expected to drive future shareholder returns. Despite some challenges in the Civil segment, such as commercial OEM production issues and soft air travel demand, the overall outlook remains positive. The company’s transformational plan and disciplined capital allocation are likely to attract investor interest, supporting the Buy rating.
In another report released on November 11, BMO Capital also maintained a Buy rating on the stock with a C$50.00 price target.
CAE’s price has also changed slightly for the past six months – from C$36.170 to C$36.920, which is a 2.07% increase.