TSE:CAE

CAE Inc (CAE.TO)

36.56
+0.36 (0.99%)
as of Jul 3, 2026, 8:00:00 pm Market Open.
316 watching
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Investor Insights
star iconJul 5, 2026, 12:00 am

This summary was created by AI, based on 5 opinions in the last 12 months.

Experts are generally optimistic about CAE Inc's prospects, highlighting strong demand for pilot training amidst a global pilot shortage and supportive defense spending from various countries. Although concerns regarding rising jet fuel prices stemming from geopolitical tensions exist, the ongoing roll-out of new aircraft and a resilient business jet market offer a bullish outlook. There are mixed feelings regarding recent financial guidance, which disappointed some investors. The company’s position in the aerospace sector, especially with defense projects, suggests long-term growth potential despite the absence of a dividend. Analysts' price targets vary, indicating differing expectations on valuation, but overall, the demand in both commercial and defense segments sets a positive tone for CAE's future performance.

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Consensus
Positive
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Valuation
Fair Value
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BUY

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. Today’s news with L3Harris Technologies is very solid. The deal is accretive with two large institutions providing equity capital. Customer and backlog is expanded and accounts for $500M more in sales. A very good move for the company. Unlock Premium - Try 5i Free

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Curated by Allan Tong since 2019.
99+ opinions with 4.15 rating.

TOP PICK
Nothing soared higher after the vaccine news than airline stocks. True, these are obvious plays. Less obvious are stocks like CAE. CAE trains pilots, and the company enjoys a strong moat being part of a duopoly. In the past month, CAE has leapt from $17 to $32, and is just $1 shy of its 52-week high. The dividend was suspended months ago, but should return at 3-4%. You can buy this now and sit on it until the divvy returns, the planes resume flying, and airlines hire new pilots. It will happen. In addition to more flights, retirement will also drive demand. CAE notes that the industry will see a large number of mandatory retirements ahead. CAE expects pilot demand of 2019 levels to return in 2022. Looking ahead, CAE projects 11,000 new aircraft to grace the skies in the 2020s. The future is looking up, but like so many things these days, one must be patient. (Disclosure: I own CAE.)
HOLD
Stock pummeled, but has soared with the 737 MAX coming back. Stock's recovered most of what it lost. A lot less flying going on, and airlines don't have money for training now. From here on, a good hold, but too late for a buy.
PAST TOP PICK
(A Top Pick Jan 23/20, Down 23%) It got a good boost from the growth to value shift. He likes this for its duopoly position (training pilots). True, few pilots are getting trained now, but CAE will benefit when that demand returns. Wait long enough and this stock will come back. Today, CAE is buying a Dutch company; some investors are concerned about their debt levels. The benefit of this purchase is to expand in Europe. The purchase will take the bounce out of the stock, but he still believes in it.
TOP PICK
Should reinstate dividend next year, between 3-4.5%. Stock's down, but business hasn't been that impaired. Pilot training in high demand during and post-Covid. Great risk/reward. Buy a partial position, as it may get worse over the winter before it gets better. No dividend. (Analysts’ price target is $24.45)
WAIT
He's waiting until there's clarity on air travel. Nobody is hiring new pilots now.
PARTIAL BUY
The company makes simulators for pilots and for doctors. They have cut their dividend recently, but it shows management is preserving cash flow. Pilots are required to keep hours up to maintain certification. As we get closer to mandated masks, and when there is news of a vaccine, there will be more comfort with high margin business travel. He might consider entering partially into a position and waiting to see improvement in fundamentals.
DON'T BUY
It may be a good time to enter in based on historical valuations. However, they sell flight simulators which may be impacted by reduce air traffic. There are just other opportunities that would be a better investment.
PAST TOP PICK
(A Top Pick Mar 29/19, Up 30%) He still likes the name. They are into civil defense and aviation simulators. And they have good tailwinds behind them still. Pilots and their training are in high demand. Their five year dividend growth rate is about 10%.
HOLD

Benefiting from problems of Boeing. If you own it, keep holding. Fully valued. Buying back stock, which is a positive. Outlook is pretty positive.

BUY ON WEAKNESS
They have great technology, and they face little competition in pilot-training. Buy on dips, like a weak quarter or a market pullback of 5-10% if, say, rates rise. Pays a decent dividend. It's a great grower.
TOP PICK

All regulators will say pilots should get more training across the board since the Boeing fiasco. It is 28 times earnings and he likes the backlog. There is a moat around the business. (Analysts’ price target is $37.78)

BUY ON WEAKNESS
It broke above a key trading level and suggests more upside to come. Your downside is to $33.76. He would buy on weakness.
WATCH
They are up smartly on the news of military activity. They are benefiting from the increase in air travel. They should benefit from the ending to the 737Max jets. He is looking for a better level in which to purchase it.
BUY
Demand from the civil aircraft training side will be big; he's been speaking to the managers. The military side of the business has been iffy and holding back the company. A stable business with 130 centres worldwide. The middle class is flying more, so there need to be more pilots, which benefits CAE. It's a cheap stock, given their free cash flow; the valuation should be higher. A long-term hold, not a trade.
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