12:58 PM EDT, 08/14/2024 (MT Newswires) -- National Bank has a Neutral take on CAE's first quarter results and is maintaining its Outperform rating and $29 target on CAE shares.

"Our Outperform rating on CAE is mainly a function of our view that the company will enjoy a multi-year period of growth in its Civil segment supported by growth in pilot training demand and increased aircraft deliveries that will drive higher simulator sales," said analyst Cameron Doerksen. Civil segment growth will slow in the short-term due to pilot hiring slowdowns in North America that National views as largely temporary.

Despite Defense's recent poor performance, with a solid and better margin backlog, and a positive underlying defense spending backdrop, Doerksen believes investors will ultimately come to ascribe more value to the segment.

Price: 23.70, Change: +0.72, Percent Change: +3.13