CAE (NYSE:CAE)
has had a good year, even though this is one of the relatively few
companies I've looked at recently that has had a big post-election run.
Already a leader in simulators and training across most categories of
civilian and military aircraft, CAE is looking to continue a pivot
toward more training and service that has been underway for more than a
decade and that offers substantially greater addressable revenue to the
company.
Valuation is interesting. The shares are
pricing in double-digit long-term annualized free cash flow growth, but I
don't think that is unreasonable. Likewise, with EBITDA. I'd be careful
chasing a late-cycle aviation play, but should the market correct (or
just the aerospace sector), I'd come back to this name as an interesting
long-term play on aviation growth (particularly civil aviation).
Continue here:
CAE Taking Aim At Much Larger Markets
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