Barclays Begins Coverage on CAE (NYSE:CAE)

Key Points

• Barclays initiated coverage of CAE with an “overweight” rating and a $38 price target, implying approximately 64% upside from the stock’s $23.15 opening price.
• Analyst sentiment is mixed: CAE has an average “Hold” rating and a consensus price target of $33.33, despite six Buy ratings, four Holds and one Sell.
• CAE beat quarterly expectations with $0.19 earnings per share versus $0.17 expected and revenue of $826.42 million, up 6.8% year over year; institutional investors own 67.36% of the stock.

Research analysts at Barclays started coverage on shares of CAE (NYSE:CAE - Get Free Report) TSE: CAE in a research report issued on Friday, Briefing.com reports. The brokerage set an "overweight" rating and a $38.00 price target on the aerospace company's stock. Barclays's price target points to a potential upside of 64.15% from the company's current price.

Several other research firms also recently weighed in on CAE. Wall Street Zen downgraded CAE from a "buy" rating to a "hold" rating in a report on Saturday, June 20th. Morgan Stanley downgraded CAE from an "equal weight" rating to an "underweight" rating in a research note on Wednesday, July 15th. Weiss Ratings lowered shares of CAE from a "hold (c)" rating to a "hold (c-)" rating in a research note on Thursday, July 23rd. Finally, Jefferies Financial Group reaffirmed a "hold" rating on shares of CAE in a research note on Thursday, August 13th. Six equities research analysts have rated the stock with a Buy rating, four have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, CAE currently has an average rating of "Hold" and a consensus target price of $33.33.

CAE Stock Performance

Shares of CAE stock opened at $23.15 on Friday. The company has a fifty day simple moving average of $24.91 and a 200-day simple moving average of $25.46. CAE has a 12-month low of $22.76 and a 12-month high of $34.24. The company has a current ratio of 0.96, a quick ratio of 0.77 and a debt-to-equity ratio of 0.55. The stock has a market cap of $7.41 billion, a price-to-earnings ratio of 32.61, a PEG ratio of 2.85 and a beta of 1.06.

CAE (NYSE:CAE - Get Free Report) TSE: CAE last announced its quarterly earnings results on Wednesday, August 12th. The aerospace company reported $0.19 earnings per share for the quarter, beating analysts' consensus estimates of $0.17 by $0.02. CAE had a net margin of 6.36% and a return on equity of 7.45%. The firm had revenue of $826.42 million during the quarter, compared to analysts' expectations of $796.86 million. During the same period in the previous year, the company earned $0.21 earnings per share. CAE's quarterly revenue was up 6.8% compared to the same quarter last year. CAE has set its FY 2027 guidance at 0.870-0.920 EPS. On average, equities analysts forecast that CAE will post 0.87 EPS for the current fiscal year.

Institutional Trading of CAE

Large investors have recently modified their holdings of the business. Caisse de depot et placement du Quebec acquired a new stake in CAE in the second quarter valued at $773,834,000. Jupiter Topco LLC bought a new position in shares of CAE during the second quarter worth about $162,919,000. Connor Clark & Lunn Investment Management Ltd. acquired a new position in CAE in the second quarter worth about $65,215,000. Dimensional Fund Advisors LP increased its holdings in CAE by 18.5% in the first quarter. Dimensional Fund Advisors LP now owns 2,198,926 shares of the aerospace company's stock valued at $57,273,000 after buying an additional 343,759 shares during the last quarter. Finally, The Manufacturers Life Insurance Company bought a new stake in CAE in the second quarter valued at about $52,968,000. 67.36% of the stock is currently owned by institutional investors and hedge funds.

CAE Company Profile

CAE Inc is a Canadian technology and training company headquartered in Montreal, Quebec. Founded in 1947, the company develops simulation, training and operational-support solutions for aviation, defense and other safety-critical industries.

In civil aviation, CAE provides flight simulators, pilot and crew training, aviation software and related services to airlines, business aviation operators, aircraft manufacturers and other aviation organizations. Its offerings are designed to support pilot training, aircraft qualification, operational readiness and workforce development.

CAE also provides simulation-based training and mission-support solutions for defense and security customers, including military organizations and government agencies.

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