Scotia Capital Analyst: Bombardier Stock Attractive; Increases Price Target

Bombardier’s Inc. (BDRAF.PK) share price tumbling nearly 17% since early June has made the stock attractive once again, according to David Tyerman, Scotia Capital analyst.

In a note to clients, he said:

We continue to expect strong earnings per share growth in coming years from solid sales growth due a record backlog and margin improvement in both operating segments. Demand appears to remain strong for business jets and transportation equipment. Regional jet prospects look challenging but perhaps less so than we have recently feared.

Bombardier’s share price was trading at C$7.66 in early morning trading Tuesday. This led Mr. Tyerman to upgrade to the stock to a “sector outperform” from “sector perform,” implying 27% of upside to his C$9.75 price target.