Bombardier (OTCMKTS:BDRBF) Shares Gap Up - Should You Buy?

Key Points

• Bombardier shares gapped up pre-market—opening at $199.77 vs the prior close of $187.87—but later retraced to about $186.06 on light volume (1,351 shares).
• Analysts' consensus is a Hold (2 Buy, 6 Hold, 2 Sell) with a consensus target price of $263, and several recent downgrades from outperform to neutral/sector perform.
• Bombardier beat quarterly estimates (EPS $4.80 vs $3.38; revenue $3.69B vs $3.48B) but still shows mixed fundamentals, including a high P/E of 38.3 and a negative return on equity of ~43.9%.

Bombardier Inc. (OTCMKTS:BDRBF - Get Free Report)'s share price gapped up prior to trading on Wednesday . The stock had previously closed at $187.87, but opened at $199.77. Bombardier shares last traded at $186.0580, with a volume of 1,351 shares traded.

Wall Street Analysts Forecast Growth

Several research analysts have weighed in on the stock. TD Securities reissued a "hold" rating on shares of Bombardier in a report on Friday, February 13th. Canadian Imperial Bank of Commerce downgraded shares of Bombardier from an "outperform" rating to a "neutral" rating in a research report on Tuesday, January 20th. BMO Capital Markets restated an "outperform" rating on shares of Bombardier in a research report on Wednesday, January 21st. Scotiabank cut shares of Bombardier from an "outperform" rating to a "sector perform" rating in a research note on Wednesday, January 21st. Finally, National Bank Financial cut shares of Bombardier from an "outperform" rating to a "sector perform" rating in a research note on Thursday, April 16th. Two equities research analysts have rated the stock with a Buy rating, six have given a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat.com, Bombardier has an average rating of "Hold" and a consensus target price of $263.00.

Bombardier Price Performance

The stock's 50 day moving average price is $185.84 and its two-hundred day moving average price is $170.09. The firm has a market capitalization of $18.21 billion and a price-to-earnings ratio of 38.32.

Bombardier (OTCMKTS:BDRBF - Get Free Report) last released its earnings results on Thursday, February 12th. The company reported $4.80 EPS for the quarter, beating the consensus estimate of $3.38 by $1.42. The firm had revenue of $3.69 billion during the quarter, compared to analysts' expectations of $3.48 billion. Bombardier had a net margin of 9.72% and a negative return on equity of 43.88%. As a group, equities research analysts anticipate that Bombardier Inc. will post 8.25 EPS for the current fiscal year.

About Bombardier

Bombardier Inc is a Canadian multinational manufacturer specializing in business aircraft. Founded in 1942 by Joseph-Armand Bombardier and headquartered in Montréal, Québec, the company has evolved from its origins in snow vehicles to a focused aviation enterprise. Today, Bombardier designs, manufactures and markets a range of business jets under the Learjet, Challenger and Global series, serving corporate, government and private customers worldwide.

The company’s product portfolio includes light, mid-size and large-cabin jets, complemented by completion, refurbishment and aftermarket support services.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.