Bombardier Inc. said it had picked up a US$3.06-billion order for 40 of its new CSeries aircraft from U.S.-based Republic Airways Holdings Thursday, a move that could get the ball rolling on further contracts from other carriers, a note from CI Capital Markets says.
Scott Rattee with CI called the a "catalyst" for other negotiations involving the CSeries.
"We believe this order validates the CSeries as a strong competitor in the single-aisle mainline market," he said in a note Friday. "We would not be surprised to see additional orders forthcoming in the near future."
Bombardier management has said they are in negotiations with more than 60 carriers, Mr. Rattee said.
The order will reduce some of the risks associated with the project, including whether or not Bombardier can deliver the aircraft on time, he said.
Mr. Rattee has raised his target price on Bombardier to $7.50 from $7, while maintaining an Outperform rating on the company.