CAE

CAE · TORONTO

$25.00−$0.02 (−0.08%)TodayMarket closed · Oct 23, 7:30 PM ET

Prev close $25.02

CAE analyst rating

BuyConsensus of 3 analysts over the last 12 months. 67% rate it a buy.

Strong buy0
Buy2
Hold1
Underperform0
Sell0

12-month price target · 16 analysts

Average $33.02 (+32.1% upside)

Low: $25.19
Now: $25.00
High: $40.40

Upgrades and downgrades

The latest rating actions, newest first

CAE analyst upgrades, downgrades and rating actions
Firm	Date	Action	Rating	Price target	Hit rate
Jefferies	Oct 13, 2026	Maintains	Hold	$28.00 → $26.00	55%
Barclays	Oct 9, 2026	Initiates	Overweight	$38.00	38%
RBC Capital	Aug 17, 2026	Upgrade	Sector Perform → Outperform	$36.00 → $46.00	71%
RBC Capital	May 26, 2026	Maintains	Sector Perform	$42.00 → $36.00	71%
Jefferies	Apr 17, 2026	Maintains	Hold	$31.00 → $27.00	55%
RBC Capital	Nov 13, 2025	Maintains	Sector Perform	$41.00 → $40.00	71%

The case for and against

Updated Oct 22, 2026

Bull case

CAE is viewed positively because its transformation plan is increasingly credible, with all 8 workstreams on track, $133MM of the $200MM–$250MM program cost already incurred, and customer attrition from network rationalization tracking below 1% of Civil revenue, which materially de-risks execution. Fundamentals are also improving, as Q1 adjusted operating income of $157MM and adjusted EPS of $0.26 both beat consensus, while Civil orders rose 64% y/y to $838MM on a 1.31x book-to-sales ratio and Defense backlog remains a robust $10.7B plus a >$5B incremental pipeline. The company’s long-term outlook is further supported by secular pilot-training demand, a 30% Civil market share, and operating leverage potential from a leaner network and Defense growth runway, making the current valuation more attractive.

Bear case

CAE is facing a weak fundamental setup because recent results repeatedly missed expectations, with FQ4 adjusted SOI of $212MM below consensus of $237MM and Civil performance offsetting stronger Defense execution. Management’s FY27 reset points to suppressed margins and earnings from transformation costs, underutilization, and customer attrition, while adjusted EPS guidance of about $1.00 to $1.07 also trailed the Street and signaled limited near-term catalysts. Despite 8% y/y Defense revenue growth to $532MM and a $452MM order book implying a 0.85x book-to-sales ratio, the outlook remains pressured by OEM delays, soft pilot hiring, and ongoing execution risk.

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