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Investing.com - BMO Capital has raised its price target on Bombardier Inc. (TSX:BBD.B) (OTC:BDRBF) to C$190 from C$185 while maintaining an Outperform rating on the stock.
The price target increase follows discussions between BMO Capital and Bombardier’s President and CEO Eric Martel regarding the business aviation market outlook and the company’s strategic priorities.
BMO Capital noted that Bombardier is approaching a phase where it will begin to generate strong and steady free cash flow, prompting discussions about the company’s capital allocation framework.
The investment firm expressed increased confidence in Bombardier’s earnings trajectory, free cash flow conversion, leverage reduction, and return on invested capital following these discussions.
Bombardier, a Canadian business jet manufacturer, has been working to strengthen its financial position after completing a significant restructuring that included divesting its commercial aviation and rail transportation divisions.
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