Medical deal improves CAE’s outlook

Article Excerpt

CAE INC. $9.53 (Toronto symbol CAE; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 256.3 million; Market cap: $2.4 billion; Price-to-sales ratio: 1.5; Dividend yield: 1.3%; SI Rating: Average) continues to expand its medical-simulator operations. It recently teamed up with Ornge, which operates Ontario’s air-ambulance system. CAE will use its simulators and classroom instruction to train Ornge’s paramedics to safely provide patient care in helicopters. The company did not reveal the size of this contract. But deals like this help CAE offset its exposure to the highly cyclical commercial-airline industry. CAE is a buy. buy…