CAE price target raised to $28 from $27 at Jefferies on pilot demand

Investing.com - Jefferies raised its price target on CAE Inc . (NYSE:CAE) to $28.00 from $27.00 on Tuesday, while maintaining a Hold rating on the aviation training company’s stock. According to InvestingPro data, CAE (TSX:CAE) currently trades at $26.24, with analyst targets ranging from $28.85 to $32.55, suggesting potential upside.

The firm cited CAE’s dominant position in the civil aviation market, where it holds approximately 40% market share. With a market capitalization of $8.42 billion and impressive revenue growth of 9.93% over the last twelve months, CAE plans to deliver 61 full flight simulators (FFS) in fiscal year 2025, representing a 30% increase from fiscal 2024 deliveries.

Jefferies noted that CAE faces near-term challenges in the first half of the fiscal year related to early full flight simulator shipments on delayed aircraft and a sluggish hiring environment in the United States. InvestingPro analysis reveals that while CAE’s short-term obligations exceed liquid assets, the company maintains a FAIR overall financial health score, suggesting resilience despite these challenges.

The company estimates approximately 200,000 new pilots will be needed globally over the next decade to support fleet growth and accommodate pilot retirements, creating long-term demand for CAE’s training services.

CAE’s senior vice president of investor relations and enterprise risk management, Andrew Arnovitz, presented these insights during Jefferies’ fifth annual Airlines Summit this week.

In other recent news, CAE Inc. reported its fourth-quarter 2025 earnings, surpassing expectations with earnings per share (EPS) of $0.47, slightly above the forecast of $0.46. The company achieved a revenue of $1.3 billion, aligning with projections and marking a 13% increase year-over-year. Despite these positive earnings, Jefferies analyst Sheila Kahyaoglu adjusted the price target for CAE to $27.00 from $28.00, maintaining a Hold rating. Kahyaoglu noted that the Civil Aviation sector might face challenges due to early simulator deliveries linked to aircraft delays. However, CAE’s Defense segment is anticipated to experience mid-single-digit growth. In leadership changes, CAE has appointed Matthew Bromberg as the new President and CEO, effective August 13, 2025, succeeding Marc Parent. Calin Rovinescu will become Executive Chairman, and Sophie Brochu will take on the role of Lead Independent (LON:IOG) Director. These appointments are pending approval at the upcoming Annual and Special Meeting of Shareholders.

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