Bombardier's updated fair value estimate has shifted slightly, with the central price target moving from about CA$364.87 to roughly CA$356.90 as analysts refresh their models. Much of the recent commentary stays constructive, with several firms keeping or assigning positive ratings while adjusting targets within a C$320 to C$406 range to reflect their latest view of Bombardier's risk and reward balance. As you read on, you will see how these evolving targets shape the current narrative and what to watch if you follow the stock.
What Wall Street Has Been Saying
🐂 Bullish Takeaways
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Several firms maintain a constructive stance on Bombardier, with Outperform ratings from Scotiabank, RBC Capital and BMO Capital that point to confidence in the company's ability to execute on its plan.
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RBC Capital set one of the higher targets at C$406, while BMO Capital and Scotiabank are in the C$370 to C$375 range. This cluster of targets above the current central fair value estimate suggests analysts still see room for upside based on their models.
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National Bank recently upgraded Bombardier to Outperform from Sector Perform with a C$360 target. This reinforces the view that some analysts see the risk reward profile as attractive at recent prices.
🐻 Bearish Takeaways
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TD Securities holds a more cautious stance with a Hold rating and a C$320 target, which sits at the low end of the recent range and highlights concerns around valuation or execution risk at higher prices.
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Scotiabank trimmed its Bombardier target from C$380 to C$370. This flags that at least one bullish firm has adjusted expectations, even while keeping a positive rating on the stock.
Do your thoughts align with the Bull or Bear Analysts? Perhaps you think there's more to the story. Head to the Simply Wall St Community to discover more perspectives!
We've flagged 4 risks for Bombardier. See which could impact your investment.
How This Changes the Fair Value For Bombardier
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The fair value central estimate changed from about CA$364.87 to roughly CA$356.90.
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The revenue growth assumption remained around 6.66% annually, moving from about 6.66% to roughly 6.66%.
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The profit margin expectation stayed close to 10.48%, moving very slightly from about 10.48% to roughly 10.48%.
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The future P/E multiple moved from about 25.42x to roughly 25.21x.
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The discount rate changed marginally from about 7.50% to around 7.48%.
Never Miss an Update: Follow The Narrative
Narratives connect Bombardier's business story to analyst expectations for revenue, earnings and fair value. They update as new orders, regulations and company decisions come through so you can see how the thesis changes over time.
Head over to the Simply Wall St Community and follow the Narrative on Bombardier to stay up to date on:
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How growth in aftermarket services and a larger business jet fleet may feed into higher recurring, high margin revenue.
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What expanding demand for large, long range jets and defense contracts could mean for Bombardier's order book and pricing power.
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Key risks such as reliance on business jets, supply chain and capacity constraints, climate related regulation and the timing of cash flows from large fleet orders.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include BBD-B.TO .
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