Bombardier is our “top investment idea”, RBC analyst says

At the very top.

That’s where RBC analyst James McGarragle ranks Bombardier (Bombardier Stock Quote, Chart, News, Analysts, Financials TSX:BBD.B) as an investment idea.

As reported by the Globe and Mail, the analyst May 2 maintained his “Outperform” rating while raising his price target on BBD from $101.00 to $108.00.

McGarragle says following the company’s Q1 results, he has more visibility on the company’s future.

“We came away positive on the demand outlook following the conference call reflecting commentary that while a number of order discussions stalled around the March timeframe due to tariff uncertainty, management is now seeing much better traction and activity as things progress post CUSMA compliance announcement,” he wrote. “Key is that we see this as setting the stage for an improvement in book-to-bill as 2025 progresses and for FCF toward the high-end of guidance. As clarity surrounding the aerospace outlook increases, we continue to see upside as significant and flag Bombardier as our top investment idea.”

On April 1, Bombardier reported its Q1, 2025 results. The company posted Adjusted EBITDA of $248.0-million on revenue of $1.5-billion, a topline that was up 19%, year-over-year.

“Bombardier’s strong start to the year demonstrates our great flexibility as well as the rock-solid fundamentals we have built our business on. I am tremendously proud of our team who remained focused on executing at the highest level to deliver double-digit gains year-over-year on revenues, adjusted EBITDA, adjusted EBIT and free cash flow,” CEO Éric Martel, said. “Over the last five years, we took proactive and necessary steps to address our balance sheet, our revenue streams, as well as supply chain pressure. The foundations we have laid allow us today not only to face uncertainty with calm and confidence, but also to consider the opportunities that may arise from it. Bombardier today is well positioned to carry forward our momentum.”​