TSE:CAE

CAE Inc (CAE.TO)

36.25
-0.35 (0.96%)
as of Aug 14, 2026, 8:00:01 pm Market Open.
320 watching
0
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.

consensus icon
Consensus
Mixed
valuation icon
Valuation
Overvalued
review icon
Similar
LMT
COMMENT
A great industrial company they just raised equity to expand on their military side. She likes this deal because it diversifies beyond airplanes. Now they're fully valued.
PARTIAL SELL
Recent acquisition will be very good. Not sure how much upside is left after this run. Reasonable that it gets to mid-40s in the next 12-24 months. Extremely well managed over the years. Multiples are getting high. Take profits. No better company in the aerospace sector in Canada.
PARTIAL SELL
They did an acquisition and did a share offering to finance it. They are moving from commercial aviation to defence. He would suggest selling half. Over the long term it will be a great company. Take your gains off the table.
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

premiumPremium content

It's a Monthly Gems opinion which is available only for Stockchase Premium

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)

Showing 61 to 75 of 740 entries