CAE price target raised to C$43 from C$38 at RBC Capital

RBC Capital raised the firm’s price target on CAE (CAE) to C$43 from C$38 and keeps an Outperform rating on the shares. The key takeaway from the company’s Q3 results was continued improvement in Defense margins, which are up meaningfully the last three quarters under the leadership of Nick Leontidis, the analyst tells investors in a research note. RBC is also more positive on CAE’s free cash flow in the quarter and sees Civil as well positioned for when pilot hiring normalizes.