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Shares of CAE Inc. (CGT) continue to rise following the company’s strong third quarter earnings that showed revenues rose 20% year-over-year.

The company said profits were up a whopping 71% due to a healthy aerospace market, particularly in stronger sales for both civil and military simulation products.

While both CAE’s revenue and earnings per share came in ahead of Versant Partners’ estimates, the firm’s analyst Cameron Doerksen doesn’t think the stock will see any major movements in the near term.

He maintained his “hold” rating on CAE shares, while hiking his price target to $12.40 from $11.60, and suggests investors buy the stock on any significant weakness.

However, Mr. Doerksen does consider the long-term outlook for CAE to be very promising. The company has already received 29 full flight simulator orders, compared with 21 for all of last year, he noted.

“Strong order activity will lead to higher deliveries in future years with higher volumes resulting in margin expansion,” he said in a research note.

CGT 1-yr chart:

CGT 1-yr chart

Source: Versant's Doerksen: Buy CAE Inc. On Any Significant Weakness