Update shared on04 Sep 2025
Analysts maintain a positive outlook on CAE, citing its dominant market position, exposure to industry growth and defense spending tailwinds, lower tariff risks, and relative undervaluation, resulting in the consensus price target holding steady at CA$42.67.
Analyst Commentary
- Bullish analysts cite CAE's strong position as a dominant player in a fragmented market and as a critical "toll booth" in aviation, implying a sustainable competitive advantage.
- The company is expected to outpace industry growth, supporting and exceeding two-times GDP end market expansion.
- Multiple analysts have highlighted tailwinds from increased defense spending and specific company wins.
- Sector-wide updates suggest lower tariff-related risks benefiting the industry and CAE specifically, supporting higher valuation multiples.
- CAE is seen as undervalued compared to sector peers, with fundamental characteristics similar to top-performing aerospace businesses.
What's in the News
- CAE shareholders approved amendments to the corporation's general by-law at the annual and special meeting.
- Announced a share repurchase program authorizing buybacks of up to 116,019,294 shares (5% of share capital) until June 9, 2026; repurchased 856,230 shares for CAD 21.3 million under a previous buyback.
- No shares repurchased under programs commenced in June 2025.
- Cebu Pacific and CAE expanded their Philippines joint venture, with plans to deploy an Airbus A330neo full-flight simulator supported by a long-term training agreement at the Clark training centre.
Valuation Changes
Summary of Valuation Changes for CAE
- The Consensus Analyst Price Target remained effectively unchanged, at CA$42.67.
- The Net Profit Margin for CAE remained effectively unchanged, at 10.60%.
- The Discount Rate for CAE remained effectively unchanged, at 7.26%.
Disclaimer
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