24-Jan-2011 3:32 PM
Bombardier downgraded by Raymond James, shares fall
Analysis
Bombardier's shares fell 2.6% on Friday after Raymond James downgraded the stock to "market perform" with target price (unchanged) of CAD6.25, citing a lack of new orders for its CSeries programme and Airbus' success with the Airbus A320neo.
Summary
- Bombardier's shares fell 2.6% after being downgraded by Raymond James due to a lack of new orders for its CSeries program and competition from Airbus' A320neo.
- Raymond James analyst expressed concerns about the rapid adoption of the A320neo and its potential impact on Bombardier's CSeries business case.
- Embraer's shares also fell 1.8% on the same day, while EADS slipped 0.8%. Boeing, on the other hand, saw a 0.8% rise in its shares.
- The lack of new orders for Bombardier's CSeries program highlights the challenges the company is facing in the highly competitive aviation market.
- The success of Airbus' A320neo indicates the strong demand for more fuel-efficient aircraft in the industry.
- The share price movements of aviation suppliers reflect the market's response to the developments in the aviation industry.
See related report: Virgin America places Airbus' 10,000th order: signs for 60 new aircraft
Raymond James analyst Steve Hansen stated, "We are increasingly mindful of the neo's rapid adoption and the potential impact on the CSeries business case."
Embraer fell 1.8% on Friday, while EADS slipped 0.8%. Boeing rose 0.8%.
Selected aviation suppliers daily share price movements (% change): 21-Jan-2011
