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
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.
SELL ON STRENGTH
It's done extremely well for him. They will benefit from a spike in defence spending. The valuation is too rich now. He'd take profits if this rises.
BUY
He used to own it. It is a great business. It looks kind of expensive for the growth you are getting so he would not be in a rush to buy it.
TOP PICK
It's been consolidating this year, but poised to rise higher. He likes the chart. (Analysts’ price target is $37.25)
TOP PICK
One of 10 companies you can buy and tuck away for a long time. Large competitive moat. Training simulators for civil and defense aerospace. Secular tailwinds. Free cash flow, dividend growth, potential acquisitions down the road. Will be around for years and years. Yield is 1.22%. (Analysts’ price target is $37.25)
BUY
Civil aviation is important because there are a lot of pilots retiring in the next decade. China is going to dramatically increase the number of airports and airplanes.
BUY
He likes it but recently took some profits. It is a really well run company. They have been doing well in the civil side. In the future they are going to do even better. In the long term he thinks they will continue to prosper. The 737-Max will put more emphasis on training.
PAST TOP PICK
(A Top Pick Sep 13/18, Up 38%) They have a moat in that he has no idea how you would start up a competing company. They are spending a lot of cap-x because they see large potential returns. There is a lot to like with this one.
BUY ON WEAKNESS
He missed it, because he thought it was too expensive. He regrets it. With the boom in flying, especially Asia, there's a need to train new pilots. It's now too late to buy this. Too expensive. If this dips 25%, he'd be all over it.
COMMENT
A defensive stock in an RRSP during a downturn or if interest rates decline? He hasn't looked at this in a long time. The demand for planes in 20 years will be huge due to demand in emerging markets. We will need pilots. CAE has had an amazing run, so the valuation is high. He needs to research this more to have an opinion.
PARTIAL SELL
It has been one of his favourite Quebec companies for some time. It has run to the extent where he is considering taking some profits. We are going to see much more turn-over and replacement for aircraft and that means demand for CAE. Increased pilot retirement will also create more demand for CAE products. (Analysts’ price target is $36.00)
BUY
Tech analysis out the window, since it's had a straight run since 2016. Acting great. It's a hold or buy. Can't add anything technically to say you should sell it. It would be just a common sense call, whether you bought it for a hold or a trade.
TOP PICK
They are flight simulators and training. This name has great momentum. They are hitting 52 week highs and all time highs. 60% of business is from services which tends to be recurring business. Yield = 1.35% (Analysts’ price target is $30.13)
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