Zacks Investment Research Downgrades CAE (NYSE:CAE) to Hold


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CAE (NYSE:CAE) (TSE:CAE) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report released on Tuesday, Zacks.com reports.

According to Zacks, “CAE is a world leader in providing simulation and modelling technologies, and integrated training services to the civil aviation industry and defence forces around the globe. The Company design, manufacture and supply simulation equipment and offer training and services. This includes integrated modelling, simulation and training solutions for commercial airlines, business aircraft operators, aircraft manufacturers and military organizations and a global network of training centres for pilots, and in some instances, cabin crew and maintenance workers. “

CAE has been the subject of a number of other research reports. The Goldman Sachs Group initiated coverage on CAE in a research report on Sunday, December 13th. They set a “buy” rating and a $32.00 price target for the company. Canaccord Genuity lifted their price target on CAE from $23.00 to $32.00 and gave the company a “hold” rating in a research report on Wednesday, November 11th. ValuEngine upgraded CAE from a “hold” rating to a “buy” rating in a research report on Tuesday, November 10th. Royal Bank of Canada boosted their target price on CAE from $30.00 to $33.00 and gave the stock a “sector perform” rating in a research report on Tuesday, December 1st. Finally, Bank of America initiated coverage on CAE in a research report on Thursday, December 17th. They issued a “buy” rating for the company. Eight investment analysts have rated the stock with a hold rating and five have given a buy rating to the company. The stock has a consensus rating of “Hold” and an average price target of $34.00.

Shares of CAE opened at $27.61 on Tuesday. The company has a market cap of $7.80 billion, a PE ratio of 153.40, a price-to-earnings-growth ratio of 10.58 and a beta of 1.73. The company has a current ratio of 1.12, a quick ratio of 0.74 and a debt-to-equity ratio of 1.02. The stock has a 50-day moving average price of $26.13 and a 200-day moving average price of $18.84. CAE has a 12-month low of $9.80 and a 12-month high of $31.56.

CAE (NYSE:CAE) (TSE:CAE) last issued its quarterly earnings results on Tuesday, November 10th. The aerospace company reported $0.09 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of ($0.03) by $0.12. The firm had revenue of $528.91 million during the quarter, compared to the consensus estimate of $472.72 million. CAE had a return on equity of 9.35% and a net margin of 2.07%. As a group, analysts predict that CAE will post 0.32 earnings per share for the current year.

A number of institutional investors have recently added to or reduced their stakes in the business. Jarislowsky Fraser Ltd lifted its holdings in CAE by 17.0% in the third quarter. Jarislowsky Fraser Ltd now owns 16,647,446 shares of the aerospace company’s stock valued at $242,779,000 after acquiring an additional 2,416,786 shares during the period. Letko Brosseau & Associates Inc. lifted its holdings in CAE by 71.3% in the third quarter. Letko Brosseau & Associates Inc. now owns 4,519,130 shares of the aerospace company’s stock valued at $65,905,000 after acquiring an additional 1,880,295 shares during the period. Great West Life Assurance Co. Can lifted its holdings in CAE by 1,742.7% in the second quarter. Great West Life Assurance Co. Can now owns 1,582,646 shares of the aerospace company’s stock valued at $25,550,000 after acquiring an additional 1,496,760 shares during the period. Goodnow Investment Group LLC lifted its holdings in CAE by 83.7% in the third quarter. Goodnow Investment Group LLC now owns 1,621,420 shares of the aerospace company’s stock valued at $23,705,000 after acquiring an additional 738,730 shares during the period. Finally, The Manufacturers Life Insurance Company lifted its holdings in CAE by 24.2% in the third quarter. The Manufacturers Life Insurance Company now owns 3,127,073 shares of the aerospace company’s stock valued at $60,915,000 after acquiring an additional 610,258 shares during the period. 52.25% of the stock is currently owned by institutional investors and hedge funds.

CAE Company Profile

CAE Inc, together with its subsidiaries, provides training solutions for the civil aviation, defence and security, and healthcare markets worldwide. The company's Civil Aviation Training Solutions segment provides training solutions for flight, cabin, maintenance, and ground personnel in commercial, business, and helicopter aviation; flight simulation training devices; and ab initio pilot training and crew sourcing services.

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