To watch: Bombardier, CAE and H2O Innovation

The Bombardier Challenger 3500 (Photo: courtesy)

What to do with the titles of Bombardier, CAE and H2O Innovation? Here are some recommendations from analysts likely to move prices in the near future. Note: the author may have a totally different opinion from that expressed.

Bombardier (BBD.B, $ 1.90): Investors remain lukewarm over Challenger update

Bombardier yesterday presented its new business jet, the Challenger 3500, which is in fact an improved version of the Challenger 350, The new aircraft is expected to enter service in the second quarter of 2022.

Benoit Poirier, analyst at Desjardins, believes that this new aircraft could help Bombardier to slow down and possibly reverse the erosion of its market share, thus allowing it to maintain its leadership position in the business aircraft segment.

The analyst is particularly pleased with Bombardier’s strategy of offering upgrades that maintain the appeal of its aircraft portfolio while avoiding plunging into overly expensive design expenses.

With this new version of the Challenger, Bombardier is reshaping the interior of the aircraft with durable features that will improve comfort, including the Nuage seat which is included for the first time in this model. It also installs the first cabin voice control instrument that acts on light, temperature and the entertainment system. Finally, the cabin pressure is reduced by 31%.

From an environmental standpoint, the new version of the Challenger has received an Environmental Product Declaration similar to that of the Global 7500. Bombardier also introduces a first “eco app” solution in business aviation, a tool aimed at optimizing the plan flight and reduce fuel use and thus reduce the aircraft’s environmental footprint.

The new version of the aircraft does not include a new engine. It could have been a good addition, believes Benoit Poirier. However, this limits the investment that Bombardier must assume.

Note that investors did not get carried away following the presentation of the Challenger 3500, the share price falling 2.5% during yesterday’s session.

The Desjardins analyst, for his part, maintains his recommendation to “keep” the stock and its target price remains at $ 1.75.

CAE (CAE, $ 38.47): Executives excited about L3Harris acquisition

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