National Bank downgraded CAE (CAE) to Sector Perform from Outperform with a higher price target of C$38, up from C$34. The firm continues to see CAE enjoying a multi-year period of growth supported by positive end market backdrops for both its Civil and Defense segments, but since reporting Q2 results in mid-November, CAE shares are up 33%, the analyst tells investors in a research note. CAE’s 24.9-times earnings multiple is also at a premium to the peers at 18- to 19-time forward earnings, the firm added.
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