Today’s update comes from Vivian Lewis, whose Top Pick for 2013 was Bombardier (BDRAF OTC or BBD.A or BBD.B on the TSX).
“Our stock pick, Bombardier, Inc. (BDRAF, OTC) is now close to take off. This Canadian company makes airplanes, rail, monorail and subway carriages and systems, and now has added wireless city electric bus systems to its line.
“Credit Suisse has just raised its target price for BDRAF to $5 (from $4.75). Canadian analysts are bullish (11 out of 13 rate it buy and only two say hold). PI has a higher target price of $5.50 for the stock, now at $4.456.
“A decent Q1 result with profits at $148 million or 8 cents/share (all US$) resulted from much better airplane and somewhat improved rail carriage sales performance. While profits were flat, sales rose 23% over Q1 2012 to $4.3 billion, and gross margins 7.1%.
“BDRAF is now launching — on time and on target — is new C-series airplanes with a maiden flight this month (possibly at the Paris Air Show.) A year of test flights will follow and then deliveries of the single aisle regional jet offering low weight and fuel economy will follow. It also makes private jets leased (and owned) by Warren Buffett.”
Vivian Lewis, Global Investing, www.Global-Investing.com, 212-758-9480, June 2013