Bombardier Order Leads to Jump in Shares

Shares in Bombardier Inc. (BDRAF.PK) jumped from the gates on Thursday, rising more than 4% after the maker of trains and airplanes said it received a firm order for 15 Q400 NextGen aircraft worth C$432-million from Colgan Air, a wholly owned subsidiary of Pinnacle Airlines (PNCL). The new aircraft will be used to expand Pinnacle's regional relationship with Continental Airlines (CAL).

Desjardins analyst Benoit Poirier predicted the stock would react positively on the news, telling clients in a note before markets opened Thursday that the order "was not expected by the market and comes from an opportunistic North American airline."

He also noted that Bombardier's Q400 backlog now represents about two years of production and he expects the company may increase its production schedule rate on the aircraft.

Mr. Poirier maintained his "buy" rating and C$8 price target.