Update shared on27 Aug 2025
Fair value Increased 0.70%Despite solid Q2 demand, robust business aviation trends, improved defense sector outlook, and lower geopolitical risks boosting confidence in Bombardier’s near-term prospects, the consensus analyst price target edged modestly lower from CA$170.60 to CA$168.72.
Analyst Commentary
- Bullish analysts cite stronger-than-expected Q2 demand, with both Canadian and international business aviation trends holding up and sustained travel activity.
- Improved outlook for defense spending and associated sector tailwinds are seen as supportive for Bombardier’s growth trajectory.
- Lower industry-wide tariff and geopolitical risks are prompting upward revisions in valuation multiples across airlines and aerospace names.
- Company-specific wins and execution in recent quarters have led to increased confidence in future performance.
- Across the sector, no major downward revisions to guidance are anticipated, reinforcing overall confidence in Bombardier’s near-term financial stability.
What's in the News
- Bombardier inaugurated an expanded component manufacturing facility in Moorpark, California, enhancing its U.S. operations and manufacturing capabilities for Global 7500 and 8000 business jets (Key Developments, 2025-08-21).
- The company delivered its first Challenger 3500 business jet in Costa Rica, strengthening its regional presence and showcasing the aircraft's capability for long-range and regional travel (Key Developments, 2025-07-25).
- Bombardier secured a significant firm order for 50 Challenger and Global aircraft, plus 70 purchase options, in a transaction valued at up to USD 4 billion, including a unique service agreement with deliveries beginning in 2027 (Key Developments, 2025-06-30).
- Progress continues on Bombardier’s new 51,000 sq. ft. paint facility at the London Biggin Hill Service Centre, further expanding MRO and customization capacity for its global customer base (Key Developments, 2025-07-08).
- JPMorgan raised its price target for Bombardier to C$135 from C$100 following Q2 results, maintaining a Neutral rating (Periodicals, 2025-07-16).
Valuation Changes
Summary of Valuation Changes for Bombardier
- The Consensus Analyst Price Target remained effectively unchanged, moving only marginally from CA$170.60 to CA$168.72.
- The Future P/E for Bombardier has significantly risen from 15.77x to 21.45x.
- The Discount Rate for Bombardier remained effectively unchanged, moving only marginally from 7.64% to 7.63%.
Disclaimer
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