TLDR
- Bombardier Class B shares hit a new 52-week high of C$228.60, trading up 1.7% with strong volume on Wednesday
- Moody’s upgraded Bombardier’s corporate family rating to Ba3 from B1, citing reduced leverage and strong free cash flow over $500 million expected for 2025
- Seven analysts rate the stock a Buy with three Hold ratings, creating a Moderate Buy consensus with price targets reaching C$239
- The company’s adjusted operating margin improved to 11.4% from 9.4% in 2023, with a book-to-bill ratio of 1.85x and $16.6 billion backlog
- Bombardier maintains very good liquidity with $2.3 billion in financial resources and plans to repay $350 million in debt by end of 2025
Bombardier Class B shares climbed to a new 52-week high on Wednesday, reaching C$228.60 before settling at C$228.00. The 1.7% gain came on volume of 371,240 shares, up from the previous close of C$224.12.
The rally follows Moody’s Ratings upgrade of Bombardier’s corporate family rating to Ba3 from B1. Moody’s analyst Will Gu pointed to the company’s progress in reducing financial leverage and improved margins as reasons for the upgrade.
Bombardier has generated positive free cash flow since 2021. The company expects to deliver over $500 million in free cash flow for 2025.
The aircraft manufacturer’s operating margin improved to 11.4% for the twelve months ending September 2025. That compares to 9.4% in 2023.
Bombardier holds a $16.6 billion backlog with a book-to-bill ratio of 1.85x as of the third quarter. The company plans to repay $350 million in debt by the end of 2025, with more repayments expected through 2026.
Analyst Community Shows Strong Support
Seven analysts now rate Bombardier a Buy, while three maintain Hold ratings. This creates a Moderate Buy consensus with an average price target of C$218.30.
Scotiabank raised its price target from C$190.00 to C$230.00 with an outperform rating on November 7th. CIBC lifted its target from C$222.00 to C$230.00 on the same day.
Royal Bank of Canada set a C$230.00 price target with an outperform rating. Desjardins moved its target to C$239.00 from C$236.00, giving it the highest price target among the analyst community.
TD Securities raised its price objective from C$181.00 to C$197.00 but maintained a hold rating. The analyst upgrades came shortly after the company’s recent financial reports.
Financial Position Remains Strong
Bombardier maintains C$2.3 billion in financial resources against approximately C$500 million in obligations. The company held about C$1.2 billion in cash as of September 30, 2025.
The company has full availability on its $450 million asset-based lending facility. That facility expires in 2029.
Moody’s also upgraded Bombardier’s probability of default rating to Ba3-PD from B1-PD. The agency upgraded the company’s senior unsecured notes ratings to Ba3 from B1.
The stock trades at a market cap of C$22.61 billion with a price-to-earnings ratio of 61.79. The price-to-earnings-growth ratio sits at 6.26, while beta measures 1.41.
The fifty-day moving average stands at C$198.26, while the 200-day moving average sits at C$158.52. The stock trades well above both technical indicators.
Moody’s positive outlook suggests expectations that Bombardier will continue generating free cash flow in 2026 and 2027. The ratings agency expects leverage could drop below 3.5x during that period.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
