TSE:BBD.B

Bombardier Inc (B) (BBD.B.TO)

324.99
-0.00 (0.00%)
as of Jul 3, 2026, 8:00:00 pm Market Open.
383 watching
0
Investor Insights
star iconJul 5, 2026, 12:00 am

This summary was created by AI, based on 15 opinions in the last 12 months.

Bombardier Inc has demonstrated a remarkable transformation from a near-bankrupt state to a leading player in the business jet market. Analysts praise its improved balance sheet, strong cash flow, and significant growth in service revenues, which are seen as high-margin opportunities. Various catalysts, including potential contracts and an increase in demand for aerospace products, have bolstered its outlook. While there are concerns about the stock becoming overvalued, the company's operational success and defense contract opportunities are viewed optimistically. Overall, many analysts recognize Bombardier's progress and potential for further growth, with most encouraging continued observation or selective investment in the stock.

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Consensus
Positive
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Valuation
Overvalued
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DON'T BUY

Challenged on the aerospace side. Transportation business is strong but both are very exposed to the overhang of weakness in Europe. Thinks there will be some significant cutbacks in spending in that whole area. CAE (CAE-T) would be a better choice.

WATCH

You can see the base. It is very, very well defined. A descending triangle. You need to see a breakout above the side of that triangle. Don’t look at it until it breaks out, otherwise it could be dead money for a while.

COMMENT

He doesn’t see near future as being so bright. There are some major problems going on. One is how well the C series will do. Another is the negative cash flow, which has been harsh the last two quarters with about $500 million going out. Have taken on more debt, which he doesn’t like. Pays a reasonable dividend. Thinks it has a lot of upside. Could be a double. On his Buy list but will have to dig a little deeper first.

TOP PICK

This is a call on the global story that is going to work out. It is at the bottom of its trading range of $3.50 to $4.50. There has been some selling recently because of the earnings and the conference call. You have itchy portfolio managers who don't want to sit on the stock for months so they are going to sell. Selling will probably update over the next few days and then settle down and you can start buying. Buy it in tranches, a 3rd every 3 or 4 weeks.

DON'T BUY

Challenged with the ‘C’ series. He would not go there.

COMMENT

7.35% bond maturing December 22/26. Is it safe? Less than investment grade and is considered as a high yield or junk bond because it is BB rated. This business is highly cyclical depending on the aircraft business primarily. If this is a big exposure in your portfolio, he would reduce your exposure. If it is less than 10% of your bond portfolio, you can keep them as long as your other securities are safer and shorter.

DON'T BUY

Have the C series which they are planning on launching but there is execution risk for the planes to get launched on time. Lack of orders, especially at the recent aerospace show, is a bit disappointing. Can't see any catalyst to get the stock going.

DON'T BUY
You can probably buy this one at these levels for a trade. The servicing component of the aircraft orders is the least capital intensive part of the sales cycle, which is a positive for them longer-term. The drawback to this company is that it is very capital intensive. Railcar business is very competitive and politically motivated. Balance sheet is somewhat stretched.
TOP PICK
Last quarter, year-over-year revenues went down from $4.7 billion to $3.5 billion. Also they are using cash, so that is not good. They have over $3 billion in orders for planes but there is a question as to how many are solid orders. Made money last quarter even with their revenue drop. Backlog is at a record level so if they have priced things well, it bodes well for the future. His initial sell target is just under $7.
COMMENT
His problem with this company is that they have lots of train orders but they don’t make any money on the trains. They live and die on headline risks on planes. He has exposure through their bonds and preferred shares.
PAST TOP PICK
(A Top Pick July 26/11. Down 30.24%.)
COMMENT
At the air show now so there is a lot of publicity about them picking up some orders on the C series. Recently got a really good order from Net Jets for some business jets and Cessna planes. Mass transit side has not been doing as well. Sells at a huge, huge multiple to Book. Balance sheet has always been a little bit levered. Doesn’t see a lot of downside from here. This is an industry he has found hard to predict.
COMMENT
1st flight of the C7 series is due later this year or early next. If they can get this and the orders keep on flowing, it will be a huge plus. Rail business, although very thin margins, is doing well. Business jets, equally as well. A purchase of this would depend on the success of the C7 series.
BUY
Very interesting seasonal characteristics and tend to be related to the big air show in the middle of July, which is when they often announce big contracts. Stock has come back to a very important longer term support level. Starting to form a nice base pattern. Once you get past the air show, the stock doesn’t do very well so take your profits.
DON'T BUY
Model price is $4.50, but he finds it expensive here. It is good that it received good news but it is 4x book value and balance sheet is weak. If we get into a raging bull market it would be ok.
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