
CAE (CAE) Stock Forecast & Price Target
CAE (CAE) Analyst Ratings
Bulls say
CAE Inc. reported a revenue increase of 21% year-over-year, reaching $753 million, largely driven by enhanced simulator sales and foreign exchange impacts, leading to an upward revision of the FY25 revenue growth estimate to 6.6%. The company's Civil Aviation segment, which generates the majority of its revenue, saw operating income surpass expectations thanks to robust margins aligned with previous estimates, bolstered by contributions from simulator sales and business training services. Additionally, improvements in Defense segment margins and increased target multiples reflect strong execution and a solid backlog, positioning CAE favorably for future growth despite past challenges in the aviation and defense sectors.
Bears say
The financial outlook for CAE Inc. is negative primarily due to a reduction in expected growth in adjusted operating income for the Civil Aviation segment, now projected to be slightly below 10% amid ongoing Original Equipment Manufacturer (OEM) delays affecting revenue. Additionally, there are significant concerns regarding pilot hiring and the potential for revenue in fiscal year 2027 to fall 10% below current estimates, exacerbated by pressures that hinder the company's restructuring program. While CAE's valuation multiples for the Civil and Defense segments remain in line with industry peers, the ongoing headwinds and lower margins in the Defense segment suggest challenges that may impact financial stability in the near term.
This aggregate rating is based on analysts' research of CAE and is not a guaranteed prediction by Public.com or investment advice.
CAE (CAE) Analyst Forecast & Price Prediction
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