Jefferies Financial Group Issues Pessimistic Forecast for CAE (NYSE:CAE) Stock Price

Key Points

• Jefferies Financial Group cut CAE’s price target from $28 to $26 while maintaining a “hold” rating, implying roughly 10.8% upside from the prior close.
• CAE shares fell to $23.47 and remain near their 12-month low of $22.76. Analysts’ overall consensus is “Hold,” with an average price target of $33.33.
• Despite mixed analyst sentiment, CAE exceeded quarterly expectations with $0.19 EPS versus $0.17 expected and revenue of $826.4 million, up 6.8% year over year.

CAE (NYSE:CAE - Get Free Report) TSE: CAE had its price target dropped by analysts at Jefferies Financial Group from $28.00 to $26.00 in a research note issued to investors on Tuesday, Benzinga reports. The brokerage currently has a "hold" rating on the aerospace company's stock. Jefferies Financial Group's price target would indicate a potential upside of 10.79% from the stock's previous close.

Other research analysts also recently issued reports about the company. Weiss Ratings downgraded CAE from a "hold (c)" rating to a "hold (c-)" rating in a report on Thursday, July 23rd. Wall Street Zen lowered CAE from a "buy" rating to a "hold" rating in a research note on Saturday, June 20th. Morgan Stanley lowered CAE from an "equal weight" rating to an "underweight" rating in a research report on Wednesday, July 15th. Finally, Barclays assumed coverage on shares of CAE in a research note on Friday. They issued an "overweight" rating and a $38.00 price target on the stock. Six 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 stock. According to MarketBeat, CAE has an average rating of "Hold" and a consensus price target of $33.33.

CAE Stock Performance

Shares of CAE stock traded down $0.25 on Tuesday, reaching $23.47. 426,193 shares of the stock were exchanged, compared to its average volume of 789,036. The business has a 50 day moving average price of $24.81 and a two-hundred day moving average price of $25.41. The firm has a market capitalization of $7.50 billion, a price-to-earnings ratio of 33.05, a PEG ratio of 2.85 and a beta of 1.06. CAE has a twelve month low of $22.76 and a twelve month high of $34.24. The company has a quick ratio of 0.77, a current ratio of 0.96 and a debt-to-equity ratio of 0.55.

CAE (NYSE:CAE - Get Free Report) TSE: CAE last released its quarterly earnings data 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 return on equity of 7.45% and a net margin of 6.36%. The business had revenue of $826.42 million during the quarter, compared to analyst estimates of $796.86 million. During the same quarter last year, the business posted $0.21 EPS. The company's revenue was up 6.8% on a year-over-year basis. CAE has set its FY 2027 guidance at 0.870-0.920 EPS. Analysts anticipate that CAE will post 0.87 earnings per share for the current fiscal year.

Hedge Funds Weigh In On CAE

A number of hedge funds have recently made changes to their positions in the company. Caisse de depot et placement du Quebec acquired a new stake in shares of CAE in the second quarter valued at approximately $773,834,000. Jupiter Topco LLC acquired a new position in CAE during the second quarter worth $162,919,000. Connor Clark & Lunn Investment Management Ltd. acquired a new position in CAE during the second quarter worth $65,215,000. Dimensional Fund Advisors LP boosted its stake in CAE by 18.5% during the first quarter. Dimensional Fund Advisors LP now owns 2,198,926 shares of the aerospace company's stock worth $57,273,000 after buying an additional 343,759 shares during the last quarter. Finally, The Manufacturers Life Insurance Company purchased a new stake in CAE in the 2nd quarter valued at $52,968,000. Institutional investors and hedge funds own 67.36% of the company's stock.

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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