12:49 PM EDT, 08/05/2025 (MT Newswires) -- National Bank has raised its one year target on CAE by $5, to $48 ahead of the company reporting its first-quarter results on Aug.12.

"While we do not expect the company to provide any new specific financial targets yet, new leadership may provide some insight on its priorities, including around capital returns," writes analyst Cameron Doerksen.

He notes that in the years prior to the pandemic, CAE's Civil segment generated pre-tax ROCEs (return on capital employed) in the 12-15% range, but despite end markets having recovered and the mix of simulators within the training network more favourable from a margin perspective, in the last fiscal year, the ROCE was 10.8%.

Doerksen suspects CAE can find additional cost savings in the business through further training center consolidations (CAE has 50+ Civil training locations), reduced overhead, and through increased investments in technology.

Price: 39.90, Change: +0.79, Percent Change: +2.02