These two are looking for new CEOs

Article Excerpt

Activists have targeted these two companies as they plan to replace their long-serving CEOs. While that pressure has helped spur their shares, we feel CAE is the better choice for your new buying. CAE INC. $35 is a buy. The company (Toronto symbol CAE; Manufacturing & Industry sector; Shares outstanding: 318.6 million; Market cap: $11.2 billion; Dividend suspended in March 2020; Takeover Target Rating: Medium; www.cae.com) is a leading maker of flight simulators for commercial and military aircraft. It also operates pilot-training schools in over 40 countries. Activist investment firm Browning West LP recently disclosed that it now owns 4.3% of CAE’s shares. Browning wants to participate in the selection of a new chief executive officer now that Marc Parent, CAE’s current CEO, prepares to retire in August 2025. The company has retained an executive search firm to help identify candidates. CAE has not yet responded to this demand. However, the activist’s involvement should help draw more attention to the company’s improving prospects as its winds down unfavourable…