Bombardier Inc (BBD-B:CA:TSX) Analysts see stock doubling to $43, Strong Buy

STA Research
by: STA Research
Bombardier Inc

Based on the Bombardier stock forecasts from 9 analysts, the average analyst target price for BBD Stock is CAD 43.89 over the next 12 months. Bombardier Inc’s average analyst rating is Strong Buy. Stock Target Advisor’s own stock analysis of Bombardier Inc is Slightly Bearish, which is based on 3 positive signals and 6 negative signals. At the last closing, Bombardier stock price was CAD 20.50Bombardier stock price has changed by -1.77% over the past week, -2.61% over the past month and -42.66% over the last year.

Bombardier Inc. engages in the manufacture and sale of business aircraft in Europe, North America, the Asia Pacific, and internationally. It provides new aircraft, specialized aircraft solutions, and pre-owned aircraft. The company also offers aftermarket services, including parts, smart services, service centers, training, and technical publications. It serves multinational corporations, charter and fractional ownership providers, governments, and private individuals. The company was incorporated in 1902 and is headquartered in Dorval, Canada.

What we like:

Underpriced compared to earnings:

The BBD stock is trading low compared to its peers on a price to earning basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Positive free cash flow:

The company had positive total free cash flow in the most recent four quarters.

Superior Earnings Growth:

The BBD stock has shown top quartile earnings growth in the previous 5 years compared to its sector.

What we don’t like:

Poor risk adjusted returns:

This company is delivering below median risk adjusted returns in its peers. Even if it is outperforming on returns, the returns are unpredictable. Proceed with caution.

High volatility:

The total returns for this company are volatile and above median for its sector over the past 5 years. Make sure you have the risk tolerance for investing in such stock.

Poor return on assets:

The company management has delivered below median return on assets in the most recent 4 quarters compared to its peers.

Negative cashflow:

The company had negative total cash flow in the most recent four quarters.

Overpriced on free cash flow basis:

The BBD stock is trading high compared to its peers on a price to free cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy BBD stock.

Low Revenue Growth:

The BBD stock has shown below median revenue growth in the previous 5 years compared to its sector.

 

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