Bombardier Stock Forecast As Quarterly Results Boost Bullish Outlook

Summary:
• Since the start of October, Bombardier's stock price has more than doubled in size, rising from 24 CAD to the current price of 51 CAD.

Since the start of October, Bombardier’s stock price has more than doubled in size, rising from 24 CAD to the current price of 51 CAD. The recent price surge follows a strong third quarter, where the company’s total revenue was reported to be CAD 1.5 billion. The company’s adjusted EBITDA also rose by 48 per cent from the previous year, and the adjusted EBITDA margin rose 460 basis points to 14.4 per cent. 

The company also reported a positive cash flow generation of $52 million in its third quarter of fiscal 2022. This was in line with the guidance the company provided in August 2022. Additionally, the company was able to reduce its debt by $100 million, bringing its year-to-date repayment to $873 million. This reduction in debt indicates that the company is in a strong financial position and is able to manage its finances effectively.

Therefore, on the fundamental side of things, the company is likely to continue its bullish trajectory. The strong third quarter included a positive cash flow and an increase in profitability, the growth in popularity of its products, including the long-range aircraft and the projected global business jets market, is also changing investors’ sentiments, which will likely continue driving up the company’s stock price.

With the Bombardier stock price trading in a favourable value territory compared to its industry peers, there is a high likelihood that we might continue to see more investors flocking into the company and pushing its stock price up. 

Bombardier Stock Price Forecast

As seen from the above fundamental analysis, the company is looking aggressively bullish, supported by positive cash flow and expected profitability. The bullish outlook is supported by the price action of the past two months, where the stock has doubled in price.

Therefore, in the next few trading sessions, I expect the Bombardier stock price to continue to grow. There is a high likelihood that the company could trade above CAD 60 before the end of the year. However, a drop below CAD 45 would invalidate my bullish analysis.

Bombardier Daily Chart