BMO maintains Outperform on Bombardier shares, Cdn$135 target

Published 26/03/2025, 15:38
BMO maintains Outperform on Bombardier shares, Cdn$135 target

On Wednesday, BMO Capital Markets reaffirmed its positive stance on Bombardier Inc (TSX:BBDb). (BBD/B:CN) (OTC: BDRBF), maintaining an Outperform rating with a price target of Cdn$135.00. The endorsement follows a recent meeting with Bombardier (OTC:BDRBF)’s senior leadership, which included CFO Bart Demosky and VP of Financial Planning & Investor Relations Francis Richer de La Fleche, among others from the Investor Relations team.

During the meeting on March 25, the BMO analyst highlighted a substantial gap between Bombardier’s market valuation and its business fundamentals. The analyst pointed out that recent fluctuations in the company’s stock price, attributed to concerns over tariff risks, have not reflected the company’s underlying strength. Financial data from InvestingPro supports this view, showing healthy revenue growth of 7.69% and a P/E ratio of 17.57, while maintaining a "GOOD" overall financial health score.

BMO’s analysis suggests that the current share price does not accurately represent Bombardier’s performance and prospects. The firm’s reiterated Outperform rating is a signal of confidence in the company’s operational health and future outlook.

Bombardier has been navigating market challenges, yet BMO’s perspective indicates that the company’s fundamentals remain robust. The analyst’s comments underscore a belief that the recent volatility presents a misalignment with the company’s intrinsic value.

Investors and market watchers will likely monitor Bombardier’s stock performance in the wake of BMO’s reiterated rating and price target, as well as any future developments that may influence the company’s valuation and industry standing.

In other recent news, Breeze Holdings Acquisition Corp. is facing potential delisting from the OTCQX market due to non-compliance with financial standards, including net tangible assets and revenue requirements. The company has been given until June 13, 2025, to address these deficiencies. Breeze Holdings is actively pursuing a business combination with YD Biopharma Limited, which is contingent on the merged entity being listed on the NASDAQ Capital Markets. Meanwhile, Bombardier has seen several adjustments from analysts regarding its stock rating and price targets. UBS upgraded Bombardier’s stock from ’Sell’ to ’Neutral,’ raising the price target to C$95, citing the company’s performance in aircraft bookings and cash flow improvements. RBC Capital maintained its Outperform rating on Bombardier but reduced the price target to C$130, reflecting concerns over supply chain challenges affecting margins. BMO Capital Markets increased Bombardier’s price target to C$135, expressing confidence in the company’s financial outlook and demand environment. These developments highlight the dynamic nature of both companies’ strategic and financial landscapes.

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