Added to YB: 2026-10-06
Pitch date: 2026-09-30
CAE.TO [bullish]
CAE Inc.
-0.76%
current return
Author Info
No bio for this author
Company Info
CAE Inc., together with its subsidiaries, provides training, simulation, and critical operation solutions in Canada, the United States, the United Kingdom, Europe, Asia, the Oceania, Africa, and rest of the Americas.
Market Cap
CAD 11.0B
Pitch Price
CAD 34.19
Price Target
46.00 (+36%)
Dividend
N/A
EV/EBITDA
12.68
P/E
38.47
EV/Sales
2.74
Sector
Aerospace and Defense
Category
turnaround
CAE: Defense momentum, Civil Aviation's Flight Safety competition, and Middle East guidance assumptions shape the investment outlook.
CAE.TO: CAE offers roughly 30% upside to C$45-C$46 from C$34.50 if Defense keeps compounding and Civil utilization stabilizes above 75% over the next 4-6 quarters without material share loss. Defense revenue rose 9% and adjusted operating income 33%, while Q1 free cash flow swung to C$104M from negative C$135M. Sizing should be moderate: FlightSafety is expanding as CAE shrinks its simulator fleet, and fiscal 2027 guidance assumes Middle East de-escalation around October 2026.
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