TSE:CAE

CAE Inc (CAE.TO)

36.25
-0.35 (0.96%)
as of Aug 14, 2026, 8:00:01 pm Market Open.
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Investor Insights
star iconAug 14, 2026, 12:00 am

This summary was created by AI, based on 8 opinions in the last 12 months.

CAE Inc. (CAE-T) is currently navigating a challenging market environment, especially in light of management changes and market conditions. The company has been recognized for its stability through long-term contracts, particularly in pilot training, which remains essential amidst a pilot shortage. However, recent developments have raised concerns, such as disappointing guidance and vulnerability to external factors like jet fuel prices driven by geopolitical issues. Analysts are divided; while some remain optimistic about the potential for growth in the defense sector and aerospace, others caution that the stock appears overvalued based on its PE ratio and growth projections. Despite the lack of dividends, the company is viewed as having strong growth prospects, with price targets varying between $43.34 and $48.30, reflecting a cautious yet hopeful outlook on its performance in the coming years.

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Consensus
Mixed
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Valuation
Overvalued
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Similar
LMT
TOP PICK

Tied to upgrade in aerospace industry. World leader in flight simulation and pilot training. Trades down on fears of military cuts. Brought down volatility in their earnings. Thinks it is unjustly cheap. Asian airlines are growing and have an outsourced training model.

TOP PICK

Offer flight training services as well as selling simulators services both in commercial and military. Worries about military spending has held the stock back recently but they have been announcing a lot of contracts on the civil side. New healthcare unit has shown that are capable of getting a few contracts. 2.2% dividend.

TOP PICK
Has been beaten up pretty badly. Historically have been exposed to very lumpy sales of their simulators. This is changing a little as they are getting more into pilot training. They are now 50% on the sales of simulators and 50% on the training side. People are worried that cutbacks in government spending will affect them but it hasn't happened to date.
BUY
Anywhere around $10 is a good opportunity. $13 in 12 months would be reasonable.
DON'T BUY
Stock is trading at depressed values because people are concerned about military spending, which is a big part of their contracts. Never liked that it had a lot of off balance sheet expenses. Very cyclical and not a Buy & Hold. 1.62% yield.
PAST TOP PICK
(A Top Pick May 17/11. Down 14.53%.)
TOP PICK
Flight simulator company. Extremely well balanced between military and commercial. Are getting big in offering training services as well. Deploying simulators into health care and mining and exploration. If you can buy around $10, you can see a reasonably good return over the next year or two.
PAST TOP PICK
(A Top Pick Jan 14/11. Down 7.99%.)
COMMENT
Had looked at this a lot in 2003-2005 when it was way out of favour and was at about half its current value. Doesn't interest him at this price point. Have done a great job overall in terms of marketing their product and revenue but their debt load is quite heavy relative to revenue. Has about a 50% upside based on historical values and he normally looks at a minimum 100%.
PAST TOP PICK
(A Top Pick Jan 14/11. Down 18.38%.) He is looking to buy more. People have lost faith on the military side of their business, which is about half their business. Civil side has been picking up a bit. There are a lot more aircraft being ordered and their training programs are going to expand going forward. Have broadened out a little into the healthcare sector.
DON'T BUY
Benefiting from the replacement cycle in jets. The problem is, they are not really winning. He would prefer to be in one of the parts providers such as Precision Castparts (PCP-N), Triumph Group (TGI-N) and others.
TOP PICK
Big in flight simulators and have recently been expanding into health areas with patient simulators in endoscopy and ultrasound. Stock has been pulling off because of concerns of military spending going forward but their civil side remains quite strong.
BUY
You have to be aware that this is a lagging business in that you order the planes and then you order the simulators to train the pilots. Rise in airplane orders in the last few years will not create a rise in simulator orders for the next 1-2 years. It will be a good longer-term business.
PARTIAL SELL
Technical trend is definitely on the upside so still looks very good. Has some seasonality as it tends to move higher from January to June/July. Made an announcement of flight simulators, which has been positive for it. Seems to have reached the end of it seasonality. If you own, consider taking some profits.
COMMENT
It's been going sideways since Feb. would put a bracket trade on, sell if it goes below $12, and buy if it goes above $12.90. The longer the sideways movement the bigger the move.
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