{"id":527456,"date":"2010-04-14T08:30:00","date_gmt":"2010-04-14T12:30:00","guid":{"rendered":"e2249889-c78b-43e3-9643-b1d7d4aa587b:422891"},"modified":"2010-04-14T08:30:00","modified_gmt":"2010-04-14T12:30:00","slug":"aerospace-rebound-good-news-for-cae-inc","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/527456","title":{"rendered":"Aerospace rebound good news for CAE Inc."},"content":{"rendered":"<p><font face=\"Verdana, Helvetica, Arial\"><span style=\"font-size:12px;\">With both Boeing Co. and Airbus SAS recently announcing production increases and passenger traffic improving, the outlook for the aerospace industry is looking a little rosier this year than it was a year ago. <br \/>\n<\/span><\/font><\/p>\n<p><font face=\"Verdana, Helvetica, Arial\"><span style=\"font-size:12px;\">\u201cIn our opinion, these rate increase announcements by the two leading aircraft OEMs are the strongest signal yet of a rebound in the commercial aerospace sector,\u201d said Cameron Doerksen, Versant Partners analyst, in a note to clients Wednesday. <br \/>\n<\/span><\/font><\/p>\n<p><font face=\"Verdana, Helvetica, Arial\"><span style=\"font-size:12px;\">The offshoot in Canada will be that several aerospace companies, including CAE Inc., the world\u2019s largest manufacturer of full-flight simulators, stand to benefit as well as the industry recovers, he said. <\/span><\/font><\/p>\n<p><font face=\"Verdana, Helvetica, Arial\"><span style=\"font-size:12px;\">Simulator sales are closely tied to new aircraft orders, so the more new planes that are ordered by airlines, the more simulators and training services are required.<br \/>\n<\/span><\/font><\/p>\n<p><font face=\"Verdana, Helvetica, Arial\"><span style=\"font-size:12px;\">While CAE has forecast 20 simulator sales this current fiscal year, when it reports its year-end results next month, Mr. Doerksen said he expects a \u201cmodest increase\u201d to next year\u2019s sales forecast.<br \/>\n<\/span><\/font><\/p>\n<p><font face=\"Verdana, Helvetica, Arial\"><span style=\"font-size:12px;\">While the strong Canadian dollar is expected to shave a cent of his previous earnings per share estimate for the current fiscal year to 64\u00a2, he introduced his new EPS estimate for next fiscal year of 73\u00a2.<br \/>\n<\/span><\/font><\/p>\n<p><font face=\"Verdana, Helvetica, Arial\"><span style=\"font-size:12px;\">Mr. Doerksen said he believes CAE\u2019s peak earnings might exceed 90\u00a2 a share this cycle compared to 79\u00a2 in the last peak when shares were trading at over $15 a piece on the Toronto Stock Exchange. <\/span><\/font><\/p>\n<p><font face=\"Verdana, Helvetica, Arial\"><span style=\"font-size:12px;\">\u201cWe<br \/>\n believe the market will be willing to pay a premium multiple for stocks<br \/>\n such as CAE that are positioned to benefit from the aerospace<br \/>\nup-cycle,\u201d Mr. Doerksen said.<\/span><\/font> <\/p>\n<p><font face=\"Verdana, Helvetica, Arial\"><span style=\"font-size:12px;\">He reiterated his \u2018buy\u2019 rating for CAE, and raised his price target on the stock to $12.50 a share, compared to his previous estimate of $10. <br \/>\n<\/span><\/font><\/p>\n<p><font face=\"Verdana, Helvetica, Arial\"><span style=\"font-size:12px;\"><br \/>\n<\/span><\/font><\/p>\n<p>Scott Deveau <\/p>\n<p><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/network.nationalpost.com\/NP\/aggbug.aspx?PostID=422891\" width=\"1\" height=\"1\"><\/p>\n","protected":false},"excerpt":{"rendered":"<p>With both Boeing Co. and Airbus SAS recently announcing production increases and passenger traffic improving, the outlook for the aerospace industry is looking a little rosier this year than it was a year ago. \u201cIn our opinion, these rate increase announcements by the two leading aircraft OEMs are the strongest signal yet of a rebound [&hellip;]<\/p>\n","protected":false},"author":6368,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":["post-527456","post","type-post","status-publish","format-standard","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/527456","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/users\/6368"}],"replies":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/comments?post=527456"}],"version-history":[{"count":0,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/527456\/revisions"}],"wp:attachment":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/media?parent=527456"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/categories?post=527456"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/tags?post=527456"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}