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Investing.com - RBC Capital raised its price target on Bombardier Inc (TSX:BBDb). (TSX:BBD.B) (OTC:BDRBF) to C$175.00 from C$108.00 while maintaining an Outperform rating.
The Canadian business jet manufacturer remains RBC’s "top idea" in the sector, with the firm citing a high single-digit free cash flow yield based on 2025 estimates and the opportunity to compound that FCF at a double-digit CAGR through 2030.
RBC kept its Q2/25 EBITDA estimate unchanged at $336 million, which sits below consensus of $346 million due to expectations of lower margins from a manufacturing-heavy revenue mix compared to services.
The firm’s 2025 EBITDA forecast remains at $1,579 million, above consensus of $1,551 million, while its free cash flow projection of $795 million sits at the high end of Bombardier’s guidance range of $500-$800 million.
RBC increased its target multiple to 9.5x from 6.5x, driving the substantial price target increase, and noted potential upside to free cash flow guidance following a recent order announcement.
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