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Most Anticipated Earnings: SLF-T, REAL-T and more Canadian Companies Reporting Earnings this Week (Nov 13-17)Yields hit highs, stocks sinkYields climb, Wall Street fades, TSX flatThis summary was created by AI, based on 8 opinions in the last 12 months.
Experts are optimistic about the future prospects of CAE Inc. There is a consensus that the company will benefit from the increasing demand for pilot training, especially with a projected pilot shortage. While there are some concerns about the defense sector and profit margins, the overall sentiment is positive, with a focus on the company's strong backlog and potential for growth recovery in the near future.
It is oversold but there is more and more demand for their products with many new pilots needing training.
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)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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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.
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.
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.
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)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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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.
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)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
In the last year, 8 stock analysts published opinions about CAE-T. 6 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.
CAE Inc was recommended as a Top Pick by on . Read the latest stock experts ratings for CAE Inc.
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.
8 stock analysts on Stockchase covered CAE Inc In the last year. It is a trending stock that is worth watching.
On 2024-04-23, CAE Inc (CAE-T) stock closed at a price of $26.06.
Problem is that many contracts they signed with airlines don't adjust to inflation so this is squeezes margins. New contracts will reflect inflation. He likes their business model, likes it long term.