Should you sell your Bombardier stock?

A great company. A fully valued stock.

That’s the takeaway from TD Cowen analyst Tim James on Bombardier (Bombardier Stock Quote, Chart, News, Analysts, Financials TSX:BBD.B)

As reported by the Globe and Mail, James this week maintained his “Hold” rating on the stock, but raised his price target from $197.00 to $203.00.

“While Defense backdrop has improved during 2025 and civil jet cycle remains constructive, (strong) earnings outlook for 2025-2027 remains largely unchanged,” James wrote. “We believe incremental longer-term upside/de-risking is accounted for in 11.9 times forward EBITDA multiple and view consolidation as likely absent additional catalysts to 2026/27 earnings estimates.”

The analyst broke down some recent numbers.

“Upper end of 2025 FCF guide is coming into view based on year-to-date results, Civil jet delivery cadence, mix shift, demand environment/order activity, Services growth, and Defense deliveries,” the analyst added. “Q4 deliveries (40 per cent of 2025 vs. 39 per cent in Q4/24) expected to be weighted toward large cabin aircraft (higher dollar value and margin). Order activity remains strong suggesting FCF benefits from deposits. Services strength should continue through Q4 (TD Cowen: up 10 per cent year-over-year). Management expects at least 10 Defense deliveries in Q4 (higher $ and margin %). Supply chain headwinds are expected to persist. We estimate that our forecast and consensus imply some moderation from Q3/25 impact.”

James left the door open for a potential re-rating, but not in the near-term.

“We forecast annual adj. EBITDA margin expansion through 2027 and beyond driven by Services and Defense growth, Global 8000 deliveries and easing supply chain. There is upside in excess of our target beyond 12 months, in our view,” he concluded.