New orders will add to your 35% gain

Article Excerpt

CAE INC. $34 is a buy. The company (Toronto symbol CAE; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 265.0 million; Market cap: $9.0 billion; Price-to-sales ratio: 2.5; Dividend yield: 1.3%; TSINetwork Rating: Average; has sold two new flight simulators for Boeing’s new 777X jetliner to Dubai-based Emirates Airline. It expects to deliver those simulators by the start of 2021. CAE has yet to reveal how much the order is worth, but has now won 4 out of 5 pilot-training and simulator contracts for Boeing 777X aircraft. Investors have gained 35% in the past year, and their shares trade at 25.0 times the likely 2020 earnings of $1.36 a share. That’s a reasonable multiple in light of the company’s high market share. The rising need for new pilots, particularly in Asia, is set to add to your gains as it drives more and more demand for CAE’s products and services. services…

You are trying to access subscriber-only content.

To read this article, you may subscribe or sign in.
If you are already a subscriber, log in here.

If you wish to become a subscriber, click here. Or you may enjoy access to all our publications when you become a Member of Pat McKeough's Inner Circle Pro.