CAE (TSE:CAE) Downgraded to Underweight Rating by Morgan Stanley

Key Points

• Morgan Stanley downgraded CAE from “equal weight” to “underweight” and cut its price target to C$37 from C$43, implying only modest upside from the current share price.
• Other brokerages remain more constructive overall, with several still rating CAE a buy/outperform; the stock’s consensus view is currently “Moderate Buy” with an average price target of C$47.92.
• CAE shares fell to C$34.38 on Wednesday after the downgrade, while the company’s latest quarterly results showed C$0.42 EPS on C$1.33 billion in revenue.

CAE (TSE:CAE - Get Free Report) NYSE: CAE was downgraded by analysts at Morgan Stanley from an "equal weight" rating to an "underweight" rating in a report released on Wednesday,BayStreet.CA reports. They currently have a C$37.00 price target on the stock, down from their prior price target of C$43.00. Morgan Stanley's target price would indicate a potential upside of 7.62% from the stock's current price.

Several other brokerages also recently weighed in on CAE. Desjardins cut their price target on CAE from C$52.00 to C$50.00 and set a "buy" rating for the company in a report on Monday, May 4th. Stifel Nicolaus lowered their price objective on CAE from C$50.00 to C$47.00 and set a "buy" rating for the company in a research report on Tuesday, May 26th. Royal Bank Of Canada dropped their target price on CAE from C$42.00 to C$36.00 and set an "outperform" rating for the company in a research note on Monday, May 25th. National Bank Financial reduced their target price on CAE from C$53.00 to C$49.00 and set an "outperform" rating on the stock in a research report on Monday, May 25th. Finally, TD decreased their price target on CAE from C$49.00 to C$43.00 and set a "buy" rating on the stock in a research note on Monday, May 25th. Ten equities research analysts have rated the stock with a Buy rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of C$47.92.

CAE Price Performance

Shares of CAE traded down C$0.70 during trading hours on Wednesday, reaching C$34.38. 682,277 shares of the company traded hands, compared to its average volume of 936,990. CAE has a fifty-two week low of C$31.42 and a fifty-two week high of C$47.65. The stock has a market capitalization of C$11.06 billion, a PE ratio of 35.44, a price-to-earnings-growth ratio of 1.76 and a beta of 0.57. The stock has a fifty day simple moving average of C$35.60 and a 200 day simple moving average of C$38.69. The company has a quick ratio of 0.71, a current ratio of 0.96 and a debt-to-equity ratio of 60.97.

CAE (TSE:CAE - Get Free Report) NYSE: CAE last issued its quarterly earnings results on Thursday, May 21st. The company reported C$0.42 EPS for the quarter. The business had revenue of C$1.33 billion during the quarter. CAE had a net margin of 6.37% and a return on equity of 6.12%.

Insider Activity

In other CAE news, insider Phillip C. Copeland sold 2,270 shares of the business's stock in a transaction that occurred on Tuesday, June 9th. The shares were sold at an average price of C$35.39, for a total transaction of C$80,335.30. Following the completion of the sale, the insider directly owned 10,970 shares in the company, valued at C$388,228.30. The trade was a 17.15% decrease in their ownership of the stock. Also, insider Mark Hounsell sold 2,673 shares of the firm's stock in a transaction on Tuesday, June 9th. The shares were sold at an average price of C$35.39, for a total transaction of C$94,597.47. Following the completion of the transaction, the insider directly owned 35,687 shares in the company, valued at approximately C$1,262,962.93. This represents a 6.97% decrease in their position. Insiders sold a total of 87,975 shares of company stock valued at $3,127,182 over the last quarter. 0.15% of the stock is owned by insiders.

About CAE

CAE Inc is a global company focused on delivering training for the civil aviation, defense, security, and healthcare markets. Multiple types of simulators and synthetic exercises may be sold to customers to serve as alternatives for live-training experiences. The company's training solutions are provided through products and services. CAE has many different training locations where clients can be trained and educated through a series of programs. Additionally, part of the revenues come from supplying aviation personnel on a lease, along with providing aviation support organizations.

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