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Investing.com - RBC Capital raised its price target on Bombardier Inc. (TSX:BBD.B) (OTC:BDRBF) to Cdn$230.00 from Cdn$202.00 on Thursday, while maintaining an Outperform rating on the stock.
The firm’s Q3/25 EBITDA estimate for Bombardier remains unchanged at $369 million, which aligns with the consensus estimate of $371 million. RBC Capital’s 2025 free cash flow projection stays at $795 million, at the high end of Bombardier’s guidance range of $500-$800 million.
RBC Capital slightly reduced its 2026 free cash flow estimate to $900 million from $952 million, citing "continued engine supply chain pressures requiring higher NWC investment." The new price target is based on rolling the valuation year to 2027 while maintaining the same 10.5x valuation multiple.
The firm noted that key focus areas for Bombardier’s upcoming earnings call will include updates on defense contract wins, engine supply chain issues, and the impact of business jet activity numbers.
Bombardier, a Canadian manufacturer of business jets and transportation equipment, has seen strong order and activity flow year-to-date, according to RBC Capital’s analysis.
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