CAE Inc: Up as brokerages hike PT on $495mln financing

Intelligent Ultrasound

01/12/2020 15:11

** Shares of the Canadian maker of flight simulators
 CAE.TO  up 2.4% at C$32.18 in early trading
    ** At least four brokerages hike PT of stock to C$1-C$5,
while two brokerages resume coverage 
    ** National Bank of Canada resumes coverage with "sector
perform" rating after co raises total proceed of $495mln from
public offerings and private placements
    ** Also adds that acquisitions of two small pilot training
providers with the proceeds improve co's position to capitalize
on an eventual recovery in pilot training demand    
    ** RBC sees the equity raise as both offensive -targeted
acquisitions, R&D efforts, and potential airline outsourcing
agreement and defensive - buffer considering elevated
uncertainty around the COVID-19 in coming months  
    ** Two of 8 brokerages rate the stock "buy", and 6 "hold";
their median PT is C$34-Refinitiv Data
    ** Up to Monday's close, stock had fallen ~9% YTD;
U.S.-listed shares are up 1.97% at $24.8

 (Reporting by Amal S in Bengaluru)
 ((Amal.S@thomsonreuters.com; within U.S.+1 646 223 8780;
outside U.S. +91 80 6749 3677;))