CAE upgraded to Neutral from Underperform at BofA

BofA analyst Ronald Epstein upgraded CAE (CAE) to Neutral from Underperform with a price target of C$45, up from C$25. CAE has written-off about $570M from their defense business and made meaningful management changes with the transitions announced for board members, the CFO, and CEO as well as the appointment of a COO, notes the analyst, who says the firm’s view on CAE has “materially improved.” CAE has also reduced headcount, demonstrated more prudent capital spending and continued to retire problematic defense contracts, the analyst tells investors.