11:17 AM EDT, 08/14/2024 (MT Newswires) -- RBC is positive on CAE's first quarter results that were in line with consensus expectations. Defense came in ahead and Civil well below. Management also lowered their full year Civil operating income growth guidance to +10% (from low double-digit).

"Net-net, and within the context of weak recent share price performance, we see the results as a positive as Defense margins, which have been an important driver of sentiment, came in better than expected," says RBC analyst James McGarragle.

As for the Civil segment, "given a robust Civil book-to-bill, we expect revenue growth to be solid looking ahead and see near-term Civil margin headwinds as temporary"

CAE is rated Outperform, with a $30 target.

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