Bombardier shares increase on launch of CSeries aircraft
July 14, 2008, Montreal - Bombardier Inc. shares gained nearly four per cent on Monday following the formal launch of the CSeries aircraft.
July 14, 2008 By Carey Fredericks
July 14, 2008, Montreal – Bombardier Inc. shares gained nearly four
per cent on Monday following the formal launch of the CSeries
Shares of the Canadian transportation manufacturer were up 28
cents, or 3.94 per cent, to $7.39 in morning trading on the Toronto
At least one analyst upgraded his target price for the company's
shares following Sunday's launch of the fuel-efficient aircraft at
the Farnborough Air Show near London.
Benoit Poirier of Desjardins Securities raised his target by $1
to $11 to reflect the project value.
Montreal-based Bombardier said it intends to capture half of the
6,300 deliveries that area expected in the 100- to 149-seat market
over the next 20 years.
Poirier assumes Bombardier will capture 25 per cent market share
with the CSeries, which is estimated to add US$1.05 per share to the
company's bottom line.
Bombardier proceeded with its anticipated announcement of its new
transcontinental aircraft with only a provisional order for 30
planes from German airlines Lufthansa. An option for 30 more jets –
valued at US$46.7 million each – raises the eventual deal to more
than $2.8 billion.
Although the announcement fell short of Bombardier's desire to
have 50 to 100 firm orders from prestigious airlines, analysts
expect more orders could be announced before Britain's prestigious
air show ends later this week.
Among the likely purchasers is Qatar Airways, International Lease
Finance Corp. and two Chinese carriers.