Gemini Jets Shop: Bombardier's New Era Underway

In a recent Investor Day event in Toronto, Bombardier Inc. (BBD) unveiled its new growth strategy and targets for 2030, which has left many investors feeling optimistic about the company's future prospects. According to Desjardins Securities analyst Benoit Poirier, BBD is entering 'the beginning of a new era' with its refreshed business plan.

One of the key takeaways from the event was the company's decision not to pursue clean sheet design projects, opting instead for derivative aircraft investments within a US$300-million capex envelope. This move has alleviated concerns among investors that BBD would be taking on significant financial risks by developing a new, untested product line.

BBD's diversified revenue streams also have tremendous potential, with Poirier noting that they could reach 50% of total revenue by 2030. The company's combined targets for 2025-2030 total US$4.5-6.5 billion in untapped organic revenue potential.

The analyst praised BBD's decision to focus on internal resources and limited capex, stating that all of its growth targets can be achieved without relying on external factors such as increased deliveries. This approach provides investors with confidence that the company's US$900-million free cash flow target is achievable, which is above the current consensus estimate.

BBD has also reaffirmed its 2025 targets, indicating that it is well on track to meet its objectives. The company provided additional details on how it plans to achieve these goals, offering investors a clear vision of its future direction.

Overall, Gemini Jets Shop sees Bombardier's new era as a positive development for the company and its investors. With its refreshed business plan and focus on organic growth, BBD is poised for success in the years ahead.

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