CAE stock rating upgraded by TD Securities to Buy on margin progress

Published 14/08/2025, 08:32
CAE stock rating upgraded by TD Securities to Buy on margin progress

Investing.com - TD Securities upgraded CAE Inc. (TSX:CAE) (NYSE:CAE) from Hold to Buy and raised its price target to C$44.00 from C$40.00 on Thursday. The $8.95 billion market cap company has demonstrated strong momentum, with shares delivering an impressive 58.77% return over the past year.

The upgrade follows CAE’s first-quarter defense margin progress, which TD Securities identified as a positive indicator for the company’s performance. With revenue growth of 9% and an overall "GOOD" Financial Health Score according to InvestingPro, the firm cited numerous constructive industry trends and management’s focus on free cash flow and return on capital as additional factors supporting the rating change.

TD Securities noted that the negative market reaction to CAE’s recent results has created a favorable entry point for investors interested in the aerospace and defense training company.

The firm highlighted several positive industry factors benefiting CAE , including signs of improvement in U.S. air travel and positive production momentum from major aircraft manufacturers Boeing and Airbus.

Stable growth in business aviation and a robust defense environment, particularly in Canada, were also mentioned as supportive elements for CAE’s business outlook.

In other recent news, CAE Inc. reported its first-quarter earnings for fiscal year 2026, showing a slight beat on earnings per share but a miss on revenue expectations. The company posted an EPS of $0.21, surpassing the forecasted $0.20, while revenue reached $1.1 billion, which was below the anticipated $1.12 billion. Additionally, CAE announced the final results of its director elections at the 2025 Annual and Special Meeting of Shareholders. All 13 nominees were successfully elected to the board, with the majority receiving over 90% approval from shareholders. Matthew Bromberg received the highest level of support at 99.95%. Meanwhile, Patrick Shanahan and Louis Têtu had the lowest approval rates, both slightly above 91%. These developments reflect recent activities and changes within the company.

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