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Investor Insights

This summary was created by AI, based on 10 opinions in the last 12 months.

The consensus among experts is that CAE Inc is facing a pilot shortage and a growing demand for training, particularly in the defense sector. While some analysts are optimistic about the potential growth recovery in 2024, others find the results to be okay but not great. The company's backlog and demand for simulators remain strong, but there are concerns about margin pressure in the defense sector. Overall, CAE Inc is seen as a strong long-term story with potential for growth.

Consensus
Hold
Valuation
Fair Value
BUY ON WEAKNESS
CAE Inc

It is oversold but there is more and more demand for their products with many new pilots needing training.

transportation equip & components
TOP PICK
CAE Inc

It stopped paying a dividend during the pandemic but could re-instate it. There is a pilot shortage and it is estimated that 264 000 new pilots will be needed by 2029. All will need training and simulation exercises, as well as the cabin crews in safety training, etc.  Also consider that pilots work their way up, starting with regional jets and progressing to larger ones so constant training will be needed, which means that there will be a constant stream of income for CAE. It is the biggest flight simulator and training company in the world.  There is also a defense sector which you are getting basically for free.      Buy 11  Hold 1  Sell 1

(Analysts’ price target is $35.17)
transportation equip & components
HOLD
CAE Inc
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

EPS of 27c beat estimates of 21c; Revenue of $1.089B beat estimates by 3%. EBITDA of $229M beat estimates by 2.4%. Three brokers lowered targets. Civil aviation was strong but the defense sector experienced lower than expected results and margin pressure. Defense margins were guided to mid-single-digit, vs consensus of 6% to 7%. Revenue rose 9.6%. Backlog did grow 11% to $11.8B. Not great results, but we think still worth keeping for its backlog and a potential growth recovery, which expected in 2024, based on consensus estimates. 
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transportation equip & components
BUY
CAE Inc

Good move to spin off medical simulation division. Room to run. Pilot shortage. Baby boom is still in revenge travel mode. Air Emirates just ordered Boeing planes. All tailwinds from a secular point of view.

transportation equip & components
DON'T BUY
CAE Inc

Good managers. Usually trades at a premium. Long-term story is strong. Geopolitics will encourage sales in defence planes (flight simulators). Profitable and ROE needs to improve, though. Enjoys pricing power. Won't buy because the valuation is high.

transportation equip & components
BUY
CAE Inc

Will continue to fly. With all costs so high, simulators allow pilots to remain current at reduced cost. Will expand over time. Greying of the pilot employee pool, and CAE will capitalize on the needed increase in training.

transportation equip & components
TOP PICK
CAE Inc

Explosion in aviation, pilot shortages, need for training. Incredible amount of demand for simulators. Commercial side has been strong. Cost hiccups have been an overhang on the defense side, and this is getting tidied up. A matter of time before it gets a higher multiple, due to quality of the business and recurring revenue. Strong backlog. No dividend.

(Analysts’ price target is $37.67)
transportation equip & components
RISKY
CAE Inc
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

We would consider it OK but not great for now. For a new position, we would be okay starting with a small position. It has been a bit disappointing but potential does remain. 
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transportation equip & components
PAST TOP PICK
CAE Inc
(A Top Pick Mar 24/22, Up 0.5%)

They had a bad Q2 last year, so he picked up shares. He wants to see them resume their dividend. They're integrating acquisitions well and air travel, especially in China, is rising. All looks good. Good long-term and a global leader.

transportation equip & components
TOP PICK
CAE Inc

Play on shortage of pilots and need to renew aircraft. Well positioned on defense. With world pressures, he expects more defense spending. Fixed-price contracts had held them back, but are rolling off and get renewed higher. Stock's come off, though it's not inexpensive. Future earnings should cause stock to be revalued up. No dividend.

(Analysts’ price target is $36.17)
transportation equip & components
HOLD
CAE Inc
Healthcare business not going anywhere. Demand will remain for the business in the long term. Very volatile market will create major ups and downs. Doesn't see flight simulator business growing. Looking for dividend re-in statement.
transportation equip & components
PAST TOP PICK
CAE Inc
(A Top Pick Dec 09/21, Down 18%) Admires management. Defense side has been hurt. Fixed price overruns with Boeing. Longer-term story is intact. One of the best in the world for pilot training and simulators. Demand is increasing. Defense should pick up. Expensive compared to current earnings, but you'll do well over the long term.
transportation equip & components
BUY ON WEAKNESS
CAE Inc
Allan Tong’s Discover Picks CAE has some things going for it. Fingers crossed, the Covid pandemic looks like it is truly behind us. There's been a boom in travel that shows no sign of abating. Airlines need pilots. Period. Given geopolitical tensions triggered by Russia, defence budgets are on the rise, and certainly not shrinking. Expect defence dollars to trickle onto CAE's bottom line. Also, the company's order backlog jumped 26% between Q1-2022 and Q1-2023, amounting to over $10.026 billion. Caveats: A recession could slow down business, but demand from defence could buffer that. Also, CAE trades at a high beta of 1.93. Read 2 Stocks on Sale: CAE and Paypal for our full analysis.
transportation equip & components
BUY
CAE Inc
One of the better managed companies in Canada. Diversified into flight training. Huge demand coming for pilot training. US defense training simulators. May be impacted by a recession, but a good, long-term buy at these levels. Fears of less government spending are misplaced, given world turmoil.
transportation equip & components
BUY
CAE Inc
CAE Inc (CAE) stock declined 32.07% on the month and 26.32% YTD. It is a technology company which digitalizes the physical world by deploying simulation training and critical operations support solutions. On the positive side, the order backlog increased 26% to $10.026 billion. This is a solid long-established global operation which should deliver results in future to support a higher stock price.
transportation equip & components
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CAE Inc(CAE-T) Rating

Ranking : 4 out of 5

Bullish - Buy Signals / Votes : 5

Neutral - Hold Signals / Votes : 1

Bearish - Sell Signals / Votes : 1

Total Signals / Votes : 7

Stockchase rating for CAE Inc is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.

CAE Inc(CAE-T) Frequently Asked Questions

What is CAE Inc stock symbol?

CAE Inc is a Canadian stock, trading under the symbol CAE-T on the Toronto Stock Exchange (CAE-CT). It is usually referred to as TSX:CAE or CAE-T

Is CAE Inc a buy or a sell?

In the last year, 7 stock analysts published opinions about CAE-T. 5 analysts recommended to BUY the stock. 1 analyst recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for CAE Inc.

Is CAE Inc a good investment or a top pick?

CAE Inc was recommended as a Top Pick by on . Read the latest stock experts ratings for CAE Inc.

Why is CAE Inc stock dropping?

Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.

Is CAE Inc worth watching?

7 stock analysts on Stockchase covered CAE Inc In the last year. It is a trending stock that is worth watching.

What is CAE Inc stock price?

On 2024-03-18, CAE Inc (CAE-T) stock closed at a price of $27.06.