
CAE (CAE) Stock Forecast & Price Target
CAE (CAE) Analyst Ratings
Bulls say
CAE Inc experienced a robust year-over-year revenue growth of 21%, amounting to $753 million, driven by increased simulator sales and favorable foreign exchange impacts. The company's fiscal year 2025 revenue growth estimate has been revised upward to 6.6%, alongside an increase in margin estimates to 7.1%, aligning with management’s guidance, indicating strong operational performance. Furthermore, continued improvements in Defense margins and a solid trajectory in the Civil segment's performance underscore CAE's potential for sustained earnings growth and enhanced valuation multiples.
Bears say
CAE Inc has adjusted its growth outlook, reducing the anticipated increase in adjusted operating income from 10% to slightly below that figure, primarily due to ongoing delays from original equipment manufacturers (OEMs) and projected revenue declines. The company's downside scenario suggests a potential 10% revenue drop for FY27 compared to current estimates, indicating significant risks tied to weak demand and ongoing challenges in pilot recruitment. Concerns regarding CAE's capital allocation strategy have also surfaced, as shareholders highlight issues related to subpar return on invested capital (ROIC), high financial leverage, and unsatisfactory free cash flow generation.
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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