This analyst simply raised his worth goal on CAE

Desjardins Securities analyst Benoit Poirier has turn into a bit of extra bullish on CAE (CAE Inventory Quote, Chart, Information, Analysts, Financials TSX:CAE) following its third-quarter fiscal 2026 outcomes, elevating his goal worth to $52.00 from $51.00 and reiterating a “Purchase” ranking, as he appears to be like previous what he expects might be a transitional FY27 and towards longer-term margin growth, portfolio optimization and steadiness sheet enchancment.

Montreal-based CAE, based in 1947, manufactures simulation applied sciences and gives modelling and coaching providers for the aviation, defence and healthcare markets.

“Whereas we count on noise within the quick time period (FY27 to be a transition yr) as administration is taking actions to reshape CAE’s long-term trajectory (8% of income thought of non-core, 10% discount of deployed business capability), we count on buyers to look ahead and concentrate on long-term upside, with full particulars of the transformation plan to be launched in early Could,” Poirier mentioned. “We made a number of changes/assumptions to our forecasts. We’re assured the shares could possibly be value $60+ within the subsequent 3–4 years.”

In Feb. 12, CAE reported third-quarter fiscal 2026 income of $1,252.1-million, up from $1,223.4-million a yr earlier. EPS was $0.34 in comparison with $0.53 final yr, whereas Adjusted EPS was $0.34 versus $0.29, together with roughly $0.02 of transformation-related bills.

Working revenue was $195.8-million, or 15.6% of income, in comparison with $262.6-million, or 21.5%, within the prior yr, which included a $72.6-million achieve associated to the honest worth remeasurement of SIMCOM. Adjusted section working revenue rose to $195.8-million, or 15.6% of income, from $190.0-million, or 15.5%, final yr.

Web debt-to-Adjusted EBITDA was 2.30x, forward of administration’s fiscal year-end goal of two.50x.

“This quarter displays continued progress as we embark on the assorted levels of our transformation plan,” mentioned president and CEO Matthew Bromberg. “Whereas we confronted decrease year-over-year efficiency in Civil, we generated robust money move, exceeded our deleveraging goal forward of schedule, and delivered a significant step-up in Defence efficiency, together with reaching an adjusted section working revenue margin above 10% for the primary time in over six years.”

Bromberg mentioned CAE has accomplished a portfolio evaluation and recognized non-core belongings representing roughly 8% of income and can pursue divestitures the place acceptable. The corporate additionally plans to take away roughly 10% of deployed business airline simulators and relocate extra gadgets to enhance utilization and returns, actions that will weigh on near-term income however are anticipated to reinforce long-term resilience.

Administration expects to supply longer-range monetary targets when it studies fiscal year-end ends in Could.

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