TD Cowen raises PTs on Canadian defence stocks amid surge in spending

Magellan Aerospace

08/06/2026 13:09

** TD Cowen raises price target on Canadian defence companies Bombardier BBDb.TO, Magellan Aerospace MAL.TO, Exchange Income EIF.TO and AirBoss of America BOS.TO 
** Brokerage says Canadian companies exposed to defence spending and government services have attracted investor interest over the past year, driven by plans for higher-than-normal budget increases
** TD Cowen expects Canada's defence spending plans to boost domestic defence revenue for Canadian companies by around 50% over the next 10 years, from roughly 10% to 15% of consolidated revenue
** Adds that Canada is also seen as an alternative to U.S. for other NATO and allied countries, with long-term NATO targets implying a 9% annual spending growth rate for Canada through 2035
Companies
New PT
Old PT
Bombardier
C$292
C$284
Magellan Aerospace
C$37
C$30
Exchange Income 
C$142
C$125
AirBoss of America 
C$10
C$9

($1 = 1.3931 Canadian dollars)

 (Reporting by Megavarshini G. Somasundaram in Bengaluru)
 ((Megavarshini.SomasundaramGnanasundari@thomsonreuters.com))