Scotiabank Has Bearish Estimate for CAE FY2027 Earnings

Key Points

• Scotiabank lowered CAE’s FY2027 EPS estimate to $1.21 from $1.26, while maintaining a “sector outperform” rating and reducing its price target to C$50.
• Analyst sentiment remains broadly positive: ten analysts rate CAE a Buy and one rates it a Sell, producing a “Moderate Buy” consensus and an average target price of C$47.92.
• CAE shares opened at C$35.51, near their 50-day average but below the 200-day average of C$38.24. Insiders sold 87,975 shares worth roughly $3.13 million over the past three months.

CAE Inc. (TSE:CAE - Free Report) NYSE: CAE - Stock analysts at Scotiabank lowered their FY2027 earnings estimates for shares of CAE in a report issued on Thursday, July 23rd. Scotiabank analyst K. Gupta now anticipates that the company will post earnings per share of $1.21 for the year, down from their prior forecast of $1.26.

Several other research analysts also recently commented on CAE. Scotia reduced their target price on CAE from C$56.00 to C$50.00 and set a "sector outperform" rating on the stock in a report on Friday, May 22nd. BMO Capital Markets dropped their price target on CAE from C$50.00 to C$47.00 and set an "outperform" rating for the company in a report on Monday, May 25th. Canaccord Genuity Group lifted their price objective on CAE from C$49.00 to C$50.00 and gave the company a "buy" rating in a research report on Thursday, April 23rd. Royal Bank Of Canada reduced their price objective on CAE from C$42.00 to C$36.00 and set an "outperform" rating on the stock in a research note on Monday, May 25th. Finally, National Bank Financial decreased their target price on CAE from C$53.00 to C$49.00 and set an "outperform" rating on the stock in a report on Monday, May 25th. Ten research analysts have rated the stock with a Buy rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average target price of C$47.92.

CAE Stock Performance

TSE CAE opened at C$35.51 on Monday. CAE has a 1-year low of C$31.42 and a 1-year high of C$47.65. The company has a 50 day moving average of C$35.38 and a 200-day moving average of C$38.24. The company has a current ratio of 0.96, a quick ratio of 0.71 and a debt-to-equity ratio of 60.97. The firm has a market cap of C$11.42 billion, a price-to-earnings ratio of 36.61, a PEG ratio of 1.76 and a beta of 0.57.

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

Insider Buying and Selling at CAE

In related news, insider Hélène Violaine Gagnon sold 1,608 shares of the firm'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 value of C$56,907.12. Following the completion of the sale, the insider owned 15,601 shares of the company's stock, valued at C$552,119.39. This trade represents a 9.34% decrease in their ownership of the stock. Also, Director Matthew Bromberg sold 64,710 shares of the firm's stock in a transaction that occurred on Wednesday, June 24th. The shares were sold at an average price of C$35.60, for a total transaction of C$2,303,676.00. Following the completion of the sale, the director directly owned 46,915 shares of the company's stock, valued at approximately C$1,670,174. This represents a 57.97% decrease in their position. Insiders sold 87,975 shares of company stock valued at $3,127,182 over the last three months. Insiders own 0.15% of the company's stock.

CAE Company Profile

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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