Update shared on 28 Nov 2025
Fair value Increased 0.53%Analysts have slightly increased their average price target for CAE, raising it from approximately $43.31 to $43.54. They cite improved revenue growth projections and stronger expected profit margins as the reasons for this adjustment.
Analyst Commentary
Recent adjustments to CAE’s price targets reflect a mix of confidence and caution among analysts regarding the company’s future performance. The following analysis summarizes the main optimistic and cautious perspectives tied to CAE’s valuation, execution, and growth outlook.
Bullish Takeaways- Bullish analysts have increased their price targets, indicating an expectation of continued growth driven by improved fundamentals.
- The company’s enhanced revenue projections suggest that top-line momentum is likely to persist in the near to medium term.
- Stronger profit margins are anticipated, reflecting ongoing operational efficiencies and successful cost management initiatives.
- Confidence in long-term sector trends supports the view that CAE is well positioned to capture broader market opportunities.
- Some analysts have modestly lowered their price targets, signaling caution regarding the sustainability of recent growth rates.
- Ongoing challenges related to execution and competitive pressures may pose risks to CAE’s ability to fully realize projected earnings improvements.
- There is concern that near-term valuation has already priced in much of the anticipated upside, making further gains more difficult without significant outperformance.
What's in the News
- CAE completed the repurchase of 61,900 shares for $2.28 million under its previously announced buyback program (Key Developments).
- CAE Inc. has been added to the FTSE All-World Index, increasing its global exposure (Key Developments).
- WestJet and CAE entered into a 15-year agreement to establish the Alberta Training Centre of Excellence, which will be a state-of-the-art aviation facility in Calgary. The center is scheduled to open in 2028 in partnership with Mount Royal University (Key Developments).
- CAE officially inaugurated its first business aviation training centre in Central Europe. CAE Vienna offers pilot and technician training on multiple aircraft types with modern amenities (Key Developments).
Valuation Changes
- Consensus Analyst Price Target has risen slightly from CA$43.31 to CA$43.54.
- Discount Rate has decreased marginally from 7.12% to 7.11%.
- Revenue Growth projection has increased from 6.42% to 6.45%.
- Net Profit Margin estimate has improved from 8.98% to 9.94%.
- Future P/E ratio has declined from 33.57x to 30.09x. This indicates a valuation adjustment based on revised earnings expectations.
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.