Bombardier wins price target raise at Desjardins

Following the company’s first quarter results, Desjardins analyst Benoit Poirier has raised his price target on Bombardier (Bombardier Stock Quote, Chart, News, Analysts, Financials TSX:BBD.B).

On April 25, BBD.B reported its Q1, 2024 results. The company posted EBIT of $144-million on revenue of $1.28-billion, a topline that was down 12% over the same period a year prior.

“Our team came flying out of the gates in 2024 on soaring aircraft orders and service revenues, CEO Eric Martel said. “The unit book to bill of 1.6 and $700-million backlog increase are even more meaningful when you take stock of solid activity across traditional customers, fleets and new opportunities materializing for Bombardier Defense. “Building our backlog, growing recurring income streams and retiring debt have all been staples of Bombardier’s solid performance, and our first quarter of 2024 delivered on all three very positively. This level of focused execution continues to provide solid ground for our team and balance sheet to stand on.”

“Overall, we view the results as positive given the stronger-than-expected bookings in the quarter and management’s positive commentary on the environment as well as the balance of the year,” Poirier wrote. “At next week’s investor day, we do not expect any changes/ surprises in BBD’s existing 2025 targets as discussions will most likely centre on capital deployment and the growth opportunities for the company’s aftermarket, defence and certified pre-owned businesses.”

In a research update to clients April 26, Poirier maintained his “Buy” rating on BBD.B while raising his price target from $96.00 to $101.00.

“We believe management is taking the necessary steps to deleverage the balance sheet and is well on track with its key strategic initiatives for margin and revenue expansion. We look forward to hearing more about the aftermarket, defence and CPO growth opportunities at the investor day next week,” the analyst concluded.