CAE Price Target Lowered to C$49 as Q4 Revenue Jumps to $953.8M
National Bank cut the company's price target to C$49.00 from C$53.00 but kept an outperform rating, citing weaker civil aviation training demand and transformation costs. The company beat Q4 revenue estimates with $953.8 million and posted EPS of $0.31, unveiling a restructuring plan targeting $125–150 million in savings by 2030.
1. Price Target Adjustment and Rating
National Bank lowered its price target to C$49.00 from C$53.00 but maintained an outperform rating, citing weaker demand in civil aviation training and anticipated transformation-related costs. The firm recommended holding the stock at its then-current price of $23.33.
2. Q4 Financial Performance
CAE reported Q4 revenue of $953.8 million, up from $888.39 million year-over-year, surpassing consensus estimates. Quarterly EPS came in at $0.31, exceeding the forecast of $0.30 but down from $0.33 a year earlier.
3. Restructuring Plan and Future Savings
Management outlined a fiscal 2027 restructuring to streamline operations and improve margins. The plan aims to deliver $125 million to $150 million in annual savings by fiscal 2030 through cost reductions and operational efficiencies.