CAE Inc (NYSE:CAE) Given Average Rating of “Moderate Buy” by Brokerages

CAE Inc (NYSE:CAE) (TSE:CAE) has received a consensus rating of “Moderate Buy” from the eleven research firms that are currently covering the company, MarketBeat reports. Four analysts have rated the stock with a hold recommendation, six have issued a buy recommendation and one has issued a strong buy recommendation on the company. The average 12 month target price among brokerages that have covered the stock in the last year is $32.00.

Several equities research analysts have issued reports on the stock. Royal Bank Of Canada cut their price objective on shares of CAE from $42.00 to $36.00 and set a “sector perform” rating for the company in a research report on Tuesday. Scotiabank restated an “outperform” rating on shares of CAE in a research report on Tuesday, February 17th. TD Securities restated a “buy” rating on shares of CAE in a research report on Tuesday, February 17th. National Bank Financial restated an “outperform” rating on shares of CAE in a research report on Friday, May 22nd. Finally, Zacks Research upgraded shares of CAE from a “strong sell” rating to a “hold” rating in a research report on Wednesday, May 13th.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the business. Transamerica Financial Advisors LLC increased its holdings in shares of CAE by 170.7% during the fourth quarter. Transamerica Financial Advisors LLC now owns 1,267 shares of the aerospace company’s stock worth $39,000 after purchasing an additional 799 shares during the period. Kestra Advisory Services LLC bought a new position in shares of CAE during the fourth quarter worth approximately $41,000. CIBC Private Wealth Group LLC bought a new position in shares of CAE during the third quarter worth approximately $42,000. Brown Brothers Harriman & Co. bought a new position in shares of CAE during the fourth quarter worth approximately $47,000. Finally, Purpose Unlimited Inc. bought a new position in shares of CAE during the fourth quarter worth approximately $74,000. 67.36% of the stock is owned by institutional investors.

CAE Stock Up 3.7%

Shares of CAE stock opened at $24.67 on Thursday. The company has a debt-to-equity ratio of 0.55, a quick ratio of 0.77 and a current ratio of 0.96. The firm’s 50-day moving average is $26.26 and its 200-day moving average is $28.58. The stock has a market cap of $7.93 billion, a price-to-earnings ratio of 34.74, a PEG ratio of 2.73 and a beta of 1.03. CAE has a 52-week low of $22.76 and a 52-week high of $34.24.

CAE (NYSE:CAE) (TSE:CAE) last issued its quarterly earnings data on Thursday, May 21st. The aerospace company reported $0.31 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.30 by $0.01. The firm had revenue of $953.79 million during the quarter, compared to the consensus estimate of $924.83 million. CAE had a net margin of 6.36% and a return on equity of 7.45%. The business’s revenue for the quarter was up 4.0% compared to the same quarter last year. During the same period last year, the business posted $0.47 earnings per share. CAE has set its FY 2027 guidance at 0.880-0.930 EPS. Sell-side analysts predict that CAE will post 0.89 EPS for the current year.

Key Stories Impacting CAE

Here are the key news stories impacting CAE this week:

• Positive Sentiment: CAE announced a teaming agreement with Saab to support Canada’s Airborne Early Warning and Control program based on Saab’s GlobalEye platform. The deal strengthens CAE’s partnership with Saab and could expand CAE’s role in training and simulation for AEW&C platforms, which is constructive for future contract opportunities. Article Title
• Positive Sentiment: Scotiabank raised several medium- and long-term earnings estimates for CAE, including FY2027, Q1 2027, Q2 2027, Q3 2027, and FY2030, while keeping an Outperform rating. Higher profit expectations can support sentiment around the stock’s longer-term outlook.
• Neutral Sentiment: Scotiabank trimmed some near- to mid-term estimates, including Q4 2027, Q2 2028, FY2028, and FY2029 EPS. This suggests a more mixed earnings outlook rather than a clear-cut upgrade or downgrade.
• Negative Sentiment: Royal Bank of Canada downgraded CAE from Moderate Buy to Hold and cut its price target to $36 from $42. That kind of analyst reset can weigh on investor confidence and help explain weakness in the shares.
• Negative Sentiment: CAE also faces broader valuation and execution concerns after recent earnings-call commentary focused on resetting near-term expectations, which may be contributing to a cautious tone among analysts.

About CAE

CAE Inc is a global leader in training and simulation technologies, headquartered in Montréal, Canada. The company specializes in the design and manufacture of high-fidelity flight simulators and training systems for civil aviation, defense and security, and healthcare markets. Leveraging advanced software and hardware integration, CAE delivers comprehensive training solutions that address pilot proficiency, mission readiness and patient safety across a wide range of platforms.

In civil aviation, CAE partners with major airlines, aircraft manufacturers and flight schools to provide pilot training services, courseware development and crew scheduling solutions.