Buy CAE stock? Here’s what this analyst thinks

National Bank Financial analyst Cameron Doerksen raised his target on CAE (CAE Stock Quote, Chart, News, Analysts, Financials TSX:CAE) to $53.00 from $52.00 and maintained his “Outperform” rating ahead of fourth-quarter fiscal 2026 results next month, saying the company’s transformation should accelerate in fiscal 2027 even if near-term patience is still required.

As reported by the Globe and Mail, in an April 17 note, Doerksen said CAE’s Civil segment continues to face some short- to medium-term market pressure, but he remains positive on its longer-term growth given the company’s position as the global leader in pilot training. He also said rising global defence spending and CAE’s role as Canada’s largest domestic defence company should support outsized growth, margin improvement and earnings expansion over time.

“Although CAE’s Civil segment is facing some near-to-medium-term market headwinds, we remain bullish on Civil segment growth over the longer term,” Doerksen said. He added that the company is taking concrete steps to optimize its portfolio, improve Civil training margins and generate better returns on capital and free cash flow.

Doerksen said investors should get more detail on that transformation, along with longer-term financial targets, when CAE reports fourth-quarter results.

The call comes days after CAE and InterGlobe Enterprises opened a new pilot training centre in Mumbai through their joint venture, CAE Simulation Training Private Limited.

The new 44,000-square-foot facility begins operations with one Airbus A320 full-flight simulator, with a second expected later this year and room to expand to six over time based on demand.

The Mumbai site becomes CSTPL’s fourth training centre in India and strengthens its position as the country’s largest pilot training organization. Across its network in Greater Noida, Gurugram, Bengaluru and now Mumbai, CSTPL currently has capacity for 16 full-flight simulators, with plans to expand that to 23 in the coming years.

CAE said the expansion supports one of the world’s fastest-growing aviation markets. According to its Aviation Talent Forecast, India will need about 22,000 new pilots by 2034. Alexandre Prévost, president of Civil Aviation at CAE, said the Mumbai opening aligns with the company’s broader transformation strategy by expanding domestic training capacity and supporting market-led growth.

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