TD Cowen analyst Tim James has maintained their neutral stance on BDRBF stock, giving a Hold rating on October 23.
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Tim James has given his Hold rating due to a combination of factors, primarily revolving around Bombardier’s current valuation. The company’s third-quarter performance and future outlook appear robust, with a particularly strong setup anticipated for the fourth quarter. However, despite these positive indicators, the recent expansion in valuation multiples suggests that the stock is fairly priced at the moment, which justifies a Hold rating rather than a more aggressive stance.
Furthermore, while Bombardier’s revenue growth and free cash flow are positive, and there is a promising shift towards larger cabin aircraft, there are modest shortfalls in margin and adjusted EBITDA compared to expectations. The company’s guidance for 2025 remains unchanged, indicating strong future cash flow and EBITDA growth. However, the recent strength in share price may have set high expectations, and the current valuation at 11 times forward EBITDA is seen as reasonable, preventing a more bullish recommendation at this time.
In another report released on October 23, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a C$204.00 price target.
BDRBF’s price has also changed dramatically for the past six months – from C$81.460 to C$197.420, which is a 142.35% increase.