Bombardier: The Cash Flow Flywheel Is Just Getting Started

Bombardier Inc. Buy call: $262 target (12% upside) on margin expansion and $1B+ FCF fueling deleveraging, buybacks & dividends. Click for this BDRAF update.

Bombardier Inc. (BDRAF) has successfully refocused its company on business jet and value extraction from those same jets. I believe the company has significant growth prospects and have a Buy rating on the name. The stock Summary - Bombardier Inc. is rated Buy, with a 12% upside to a $262 price target, driven by operational focus and cash flow improvements.

- BDRAF growth is underpinned by higher-margin aircraft mix, expanding services, defense opportunities, and significant deleveraging, with margins expected to reach 17.5% by 2028. - Free cash flow is set to consistently exceed $1 billion, enabling share repurchases and potential dividends as net debt leverage drops below 1x by 2028. - Key BDRAF risks include supply chain health and inflation, but incremental improvements and disciplined capital allocation support a compelling multi-year investment case.

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