Update shared on 27 Nov 2025
Fair value Increased 7.83%Analysts have increased their fair value estimate for Bombardier from C$201.35 to C$217.12. They cited improved revenue growth forecasts and stronger profit margins as key drivers behind the upward revision.
Analyst Commentary
Recent analyst updates have focused on Bombardier's price targets, with several adjustments reflecting changing expectations for the company’s outlook. These perspectives can be grouped into both bullish and bearish takeaways involving Bombardier's valuation, growth prospects, and execution risks.
Bullish Takeaways
- Bullish analysts have cited the company’s stronger revenue growth forecasts as driving their upward price target revisions.
- The improved profit margins and operational performance are seen as positively influencing future cash flow generation and profitability.
- Increased price targets to C$203 and C$225 highlight growing confidence in management’s ability to execute on strategic priorities and deliver on guidance.
- Optimistic forecasts suggest Bombardier could outperform, with additional upside if the company continues to surpass market expectations.
Bearish Takeaways
- Some analysts, while raising targets, continue to maintain Hold recommendations, signaling caution regarding Bombardier’s valuation following recent share price performance.
- There are ongoing concerns about potential execution risks as the company pursues its growth objectives in a cyclical and competitive sector.
- Bears are cautious about the sustainability of margin improvements, particularly if end-market demand becomes less supportive.
- Any setbacks in meeting financial targets or unexpected operational challenges could limit further price appreciation.
What's in the News
- Bombardier and ELIE SAAB have announced a collaboration to create an exclusive passenger cabin design for the Global 8000 aircraft. This represents Bombardier's first design partnership with a luxury fashion house. The unveiling is set for 2026. (Key Developments)
- Bombardier is actively seeking targeted acquisitions and investments to expand its capabilities, with a focus on service licensing for major aircraft components such as landing gear and engine repair. (Key Developments)
- Sojitz Corporation ordered two Bombardier jets, the Global 6500 and upcoming Global 8000, for its new Share Jet Program. This marks Japan's first large, ultra-long-range business jet shared ownership initiative. (Key Developments)
- Bombardier Defense signed a 10-year service agreement with SNC for Global 6500 aircraft equipped with RAPCON-X technology, supporting specialized U.S. military missions. (Key Developments)
- Bombardier announced the opening of a new service centre at Fort Wayne International Airport as part of a large-scale U.S. expansion of maintenance and support facilities. (Key Developments)
Valuation Changes
- Fair Value Estimate: Increased from CA$201.35 to CA$217.12. This reflects a higher assessment of intrinsic worth.
- Discount Rate: Decreased slightly from 7.35% to 7.26%. This indicates a marginal reduction in perceived investment risk.
- Revenue Growth Forecast: Risen slightly from 5.28% to 5.47% in annual growth expectations.
- Net Profit Margin: Improved from 9.18% to 10.57%, suggesting stronger profitability projections.
- Future P/E Ratio: Declined from 24.44x to 17.33x, signaling expectations for greater earnings relative to share price.
Disclaimer
AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.