10:37 AM EDT, 03/12/2024 (MT Newswires) -- RBC Capital Markets said Monday that the US Department of Defense's 2025 budget request of US$850 billion is neutral for CAE Inc. ( CAE ) , a provider of defense and security services.

The budget was 1% higher than the department's 2024 increase, according to RBC.

"We view the announcement as neutral for CAE and continue to expect sentiment in the name to be driven by defense margins, but nevertheless view a stable demand backdrop as supportive to margin improvement longer-term," RBC said.

RBC gave CAE an outperform rating with a $34.00 price target.

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