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Investing.com - RBC Capital has raised its price target on CAE Inc . (NYSE:CAE) (TSX:CAE) to Cdn$41.00 from Cdn$38.00 while maintaining a Sector Perform rating on the stock. The company’s shares are currently trading near their 52-week high of $29.71, having delivered an impressive 58.47% return over the past year.
The research firm lowered its first-quarter EBITDA estimate to $255 million, which aligns with consensus estimates, citing weaker pilot hiring trends in the United States during the quarter.
RBC Capital’s fiscal 2025 EBITDA projection for CAE now stands at $1,245 million, slightly above the consensus estimate of $1,238 million.
The firm’s fiscal 2026 Civil adjusted operating income growth forecast of 8% remains consistent with CAE’s guidance of mid to high single-digit growth, while the target multiple has been increased to 11.9x from 11.4x.
RBC Capital noted that key focus areas for the upcoming quarter will include margins in CAE’s Defense segment, the impact of commercial aerospace supply chains, and U.S. airline hiring trends.
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’s revenue for the quarter stood at $1.3 billion, marking a 13% increase year-over-year, aligning with projections. Jefferies adjusted its price target for CAE to $27.00, maintaining a Hold rating, while noting the company’s fiscal year 2026 guidance suggests a modest first half with flat sales expected. Meanwhile, Goldman Sachs initiated coverage on CAE with a Buy rating, emphasizing the company’s undervaluation and potential for growth in the aviation market. The company also announced a significant leadership change, appointing Matthew Bromberg as the new President and CEO, effective August 13, 2025. This transition is part of a strategic move following Marc Parent’s departure. In terms of future prospects, CAE anticipates mid to high single-digit operating income growth in its civil segment and low double-digit growth in its defense segment for fiscal 2026. The company plans to deliver 61 full flight simulators in fiscal year 2025, up 30% from the previous year, driven by the anticipated need for approximately 200,000 new pilots globally over the next decade.
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