Topic: How To Invest

The Successful Investor Hotline – Friday, November 29, 2024

Article Excerpt

BOMBARDIER INC., Toronto symbols BBD.A $96.77 and BBD.B $96.77, is still a hold for aggressive investors. The company now focuses solely on making private luxury and business jet planes following the sale of its passenger railcar business to France’s Alstom SA in January 2021. The stock fell 7% this week after U.S. President-elect Donald Trump announced he will impose a 25% tariff on all goods imported into the U.S. from Canada and Mexico. The company currently makes its planes and various components in all three countries, so the tariffs would hurt its sales and earnings. Customers in the U.S. account for about 70% of Bombardier’s aircraft deliveries. However, it’s unlikely the proposed tariffs would impact Bombardier’s maintenance and support operations. In the third quarter of 2024, aftermarket service revenue rose 27.5%, and supplied 25% of its total revenue. What’s more, the company expects its service revenue will rise between 5% and 9% annually through 2030. Despite this week’s drop, Bombardier shares have soared over 90% in…