Analysts have raised Bombardier’s price target from CA$171.79 to CA$180.73, driven by improved sector sentiment, resilient business aviation demand, favorable defense outlook, and strong company performance.
Analyst Commentary
- Upward revisions to valuation multiples and target prices across the sector reflect improved industry sentiment and reduced tariff-related risks.
- Continued strength in business aviation and resilient demand trends in Q2, particularly as Canadians maintained high travel activity.
- Improved outlook for defense spending, providing a sector-wide tailwind benefiting Bombardier's growth prospects.
- Company-specific wins and execution contributing to analysts’ confidence in operational performance.
- Bullish analysts cite minimal risk of negative guidance revisions and strong performance across the aerospace industry as supportive factors for higher price targets.
What's in the News
- Bombardier's Challenger and Global aircraft secured a significant firm order for 50 units, along with a novel service agreement, valued at USD 1.7 billion, with deliveries starting in 2027; the agreement includes 70 additional purchase options that could bring the total deal to over USD 4 billion if exercised. (Key Developments, 2025-06-30)
- The company inaugurated a relocated, expanded component manufacturing facility in Moorpark, California, enhancing its U.S. operations and supporting production for the Global 7500 and Global 8000 business jets. (Key Developments, 2025-08-21)
- Bombardier is progressing with a new 51,000 sq. ft. paint facility at its London Biggin Hill Service Centre, with completion targeted for 2H 2026, further expanding its service capabilities and customer support offerings at the UK hub. (Key Developments, 2025-07-08)
- Bombardier shares (BBD.A and BBD.B) were added to the FTSE All-World Index, signaling increased visibility and potential investor interest. (Key Developments, 2025-09-20)
- JPMorgan raised its Bombardier price target to C$135 from C$100 following the Q2 report but maintained a Neutral rating. (Periodicals, 2025-07-16)
Valuation Changes
Summary of Valuation Changes for Bombardier
- The Consensus Analyst Price Target has risen from CA$171.79 to CA$180.73.
- The Future P/E for Bombardier has significantly risen from 15.86x to 22.94x.
- The Discount Rate for Bombardier remained effectively unchanged, moving only marginally from 7.69% to 7.57%.
Disclaimer
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