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Bombardier: Credit Suisse, still a buyer, cuts estimates

(CercleFinance.com) - Credit Suisse maintains an "outperform" rating on Bombardier, with a target price of 4 Canadian dollars, while lowering its earnings estimates on the aircraft and train maker after attending its annual investor day in New York.

At the meeting, management provided an update on the progress on the turnaround plan and discussed the 2018 guidance targets, the broker writes in a research note.

Credit Suisse says it remains confident that the company can hit its free cash-flow targets in 2020, driven by the Airbus CSeries deal and the successful execution of the five-year turnaround plan.

"Bombardier continues to be our top pick, though aside from unpredictable CSeries orders, we see a hiatus in major positive catalysts for a quarter or two until Global 7000 certification/entry into service," it points out.

Yesterday Bombardier said it was targeting 2018 revenues in the range of 17 billion dollars to 17.5 billion dollars, representing an increase of approximately 1 billion dollars relative to 2017 guidance.

The Montreal-based firm also announced another string of deals, providing operations and maintenance services for the automated people mover system of Denver International Airport and supplying 60 new trains to c2c in the UK.

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