02:39 PM EDT, 07/17/2024 (MT Newswires) -- Bombardier guided to conservative delivery growth of ~150 aircraft/per year post 2025.

RBC's view is that the business jet market remains under-supplied, and the analysts see upside to this figure, on top of the company's focus to grow Aftermarket, Defense, and Certified Pre-Owned aircraft (CPO) program to 50% of revenue by 2030 (from 31% in 2023).

The brokerage is also calling for FCF to inflect meaningfully by 2025E to >$900 million. "While we see a near-term inflection in FCF as key to our investment thesis, we also believe the market is not appreciating Defense, CPO, and Services opportunities longer-term."

Bombardier shares are primed for a re-rating given solid execution, debt reduction, and FCF growth, all of which are expected over time to erase the historical valuation hangover, RBC said.

Bombardier is rated Outperform, with a $133 target.

Price: 96.15, Change: -1.56, Percent Change: -1.60