On Tuesday, BMO Capital Markets expressed confidence in Bombardier (OTC:BDRBF)'s financial performance, with analyst Fadi Chamoun increasing the price target on Bombardier stock to Cdn$135 from Cdn$129, while maintaining an Outperform rating.
The optimism appears well-founded, as InvestingPro data shows Bombardier has delivered an impressive 81% return over the past year, with a healthy P/E ratio of 15.9. Chamoun highlighted the company's strong foundation for continued outperformance in 2025.
Bombardier is anticipated to announce its fourth quarter results for the year 2024 on February 6, and BMO Capital Markets expects the company to meet or surpass its financial targets for the year. With InvestingPro's Financial Health Score indicating GOOD overall condition and revenue growth of nearly 13% in the last twelve months, the company appears well-positioned. The firm predicts that Bombardier's outlook for 2025 will serve as the next significant driver for the stock's performance.
Despite potential short-term disruptions in orders due to tariff-related uncertainties, BMO Capital sees a robust demand environment. This demand is expected to extend visibility into aircraft deliveries well into 2026, underscoring the firm's positive outlook on Bombardier's prospects.
According to InvestingPro's Fair Value analysis, the stock appears undervalued, suggesting potential upside opportunity. For deeper insights and additional ProTips, investors can access the comprehensive Pro Research Report available on InvestingPro.
Chamoun's statement underscored this sentiment, saying, "On Solid Footing for Continued Outperformance in 2025. BBD is expected to report Q4/24 results on February 6, and we believe the company will meet or even exceed in some cases its 2024 financial targets. The next catalyst will likely be the 2025 outlook.
While some tariff-related uncertainties may be a source of near-term disruptions in orders, we continue to see strong demand environment providing visibility into aircraft deliveries well into 2026. We continue to see compelling upside opportunity. We raise our target price to $135 (from $129)."
The raised price target reflects BMO Capital's belief in Bombardier's ability to sustain its growth trajectory and deliver on its financial commitments. The company's stock performance will be closely watched as it prepares to reveal its fourth-quarter results and provide guidance for the coming year.
In other recent news, Bombardier, the Canadian aerospace company, has been making strides in its financial performance. The company's third-quarter earnings call revealed total revenues hitting $2.1 billion, a 12% rise from the previous year. A significant contributor to this was the company's service revenue, which reached a record $528 million. Moreover, the adjusted EBITDA saw an increase of 8%, amounting to $307 million.
CIBC (TSX:CM) analyst Kevin Chiang has raised the stock price target on Bombardier to C$132.00, maintaining an Outperformer rating on the stock. Chiang highlighted Bombardier's projected Free Cash Flow (FCF) target for 2024, which is expected to be between US$100 million and US$400 million. A strategic decision to build up inventory to meet delivery targets for the year, which is expected to include around 60 units in Q4, was also noted.
Recent developments underline Bombardier's successful navigation through supply chain challenges. The company is on track to meet full-year guidance for revenues and EBITDA, with a strong focus on maintaining stable production rates for its Globals and Challengers into 2025.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.