2023-09-18 18:55:47
Since the beginning of August, Bombardier’s stock has lost nearly 30% of its value. (Photo: courtesy)
What to do with the titles of Bombardier, Transat AT and Empire Company? Here are some analyst recommendations likely to move prices soon. Note: the author may have an opinion completely different from that expressed.
Bombardier (BBD.B, $49.20): a Flexjet order that could be a game-changer for Bombardier
Since the disclosure of its latest quarterly results at the beginning of August, many investors seem to have deserted the title of the Quebec business jet manufacturer, it having lost nearly 30% of its value.
But last Thursday, business jet industry expert Doug Gollan reported that Flexjet, the second-largest supplier of multi-tenant business jets, was likely to place a very large order for aircraft next month at the National Business Aviation Association (NBAA) meeting in Las Vegas October 17-19.
Considering the solid business relationship that exists between Flexjet and Bombardier, Benoit Poirier, analyst at Desjardins Securities, says he is optimistic that Bombardier will receive a new order from Flexjet which would involve at least 25 aircraft.
The analyst notes that Gulfstream, one of Bombardier’s two main competitors, has already indicated that it will not be present at the meeting in Las Vegas, an absence which suggests that it has nothing to announce on its side. . As for Embraer, its order book being full, it would no longer be able to accept new contracts, the analyst believes.
An order of this magnitude could be a game-changer for Bombardier and restore investor confidence in its ability to fill its order book and return its free cash flow to positive territory, two of the points that worried investors during the disclosure of the latest results and which had caused the fall of the stock which the Desjardins analyst describes as unjustified.
Benoit Poirier recommends purchasing the stock with a target price of $99.00, double the current price.
Transat AT (TRZ, $4.25): it is approaching a turning point, but it is better to wait for a few other positive signals according to the Desjardins analyst
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