CAE stock price target raised to C$50 from C$40 at BMO Capital

Investing.com - BMO Capital raised its price target on CAE Inc . (TSE:CAE) (NYSE:CAE) to C$50.00 from C$40.00 while maintaining an Outperform rating. The stock, currently trading at $29.60, has shown remarkable strength with a 57.55% return over the past year. According to InvestingPro data, CAE is currently trading near its 52-week high of $30.13.

The price target increase comes as CAE prepares for a leadership transition, with CEO Marc Parent stepping down after 16 years at the helm. Calin Rovinescu will take over as Executive Chairman and Matthew Bromberg will become President & CEO next month.

BMO Capital analyst Fadi Chamoun indicated that a "significant idiosyncratic opportunity" is emerging for the company. The analyst recently discussed the transition with Mr. Rovinescu and the strategic priorities planned under the new leadership.

In the research note, BMO presented a strategic framework that supports valuation multiple improvement over the near-to-medium term for the aviation training and simulation technology company.

The firm reiterated its Outperform rating on CAE stock alongside the 25% increase in price target.

In other recent news, CAE Inc. has been the focus of several analyst reports and strategic developments. RBC Capital raised its price target for CAE to Cdn$41.00, citing a growth outlook, while lowering its first-quarter EBITDA estimate to $255 million, aligning with consensus due to weaker pilot hiring trends in the U.S. Goldman Sachs assumed coverage of CAE with a Buy rating and a price target of $33.00, noting the company’s strong market position and potential for growth. Jefferies adjusted its price target to $27.00, maintaining a Hold rating, and noted challenges related to simulator deliveries and a slow hiring environment, while still projecting revenue growth of 6% and an 8% increase in operating income.

Additionally, CAE announced leadership changes with the appointment of Matthew Bromberg as the new CEO, effective August 13, 2025. Calin Rovinescu will become Executive Chairman, and Sophie Brochu will step in as Lead Independent (LON:IOG) Director, reflecting the company’s commitment to strong governance. These appointments are part of a strategic transition following Marc Parent’s departure and are pending approval at the upcoming Annual and Special Meeting of Shareholders. Analysts have expressed optimism about the new management team, with Goldman Sachs highlighting Bromberg’s fresh ideas and leadership experience. These developments indicate CAE’s focus on strategic growth and maintaining its market position amid industry challenges.

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