BMO Capital analyst Fadi Chamoun has maintained their bullish stance on CAE stock, giving a Buy rating yesterday.
Fadi Chamoun has given his Buy rating due to a combination of factors that highlight CAE’s strong growth potential. The business aviation training franchise, which contributes significantly to CAE’s Civil segment profitability, shows robust momentum. This is supported by the recent acquisition of SIMCOM, enhancing CAE’s capabilities and expanding its training infrastructure. The site visit to CAE’s facility in Orlando further underscored the positive outlook, with Flexjet’s fleet expansion serving as a significant growth driver for CAE’s training services.
Additionally, the commercial aviation sector is experiencing a gradual recovery in aircraft production rates, coupled with increasing pilot attrition rates and sustained global travel demand. These factors are expected to maintain a healthy demand for CAE’s training services. Furthermore, CAE’s strategic acquisitions in recent years are anticipated to bolster earnings growth, free cash flow, and return on invested capital, reinforcing the positive outlook for both the Defense and Civil markets.
Chamoun covers the Industrials sector, focusing on stocks such as CAE, Bombardier, and Air Canada. According to TipRanks, Chamoun has an average return of 12.9% and a 60.05% success rate on recommended stocks.
In another report released yesterday, RBC Capital also reiterated a Buy rating on the stock with a C$43.00 price target.