'First-Time Bombardier Buyer': Bombardier Stock (TSE:BBD.B) Blasts Up 20% With $1.7 Billion Order
Don't Miss TipRanks' Half-Year Sale
Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week.
Reports noted that Bombardier had landed a 'firm order' for 50 Challenger and Global models of aircraft, and also a services agreement for the lot. The buyer was not identified, and it was also unmentioned what proportions were purchased; whether it was 25 Challengers and 25 Globals, or what model numbers were involved. We do know that it was a first-time buyer, someone who had never purchased Bombardier aircraft before. We also know that the cumulative total of the contracts involved was $1.7 billion, and the buyer actually has an option to purchase another 70 on top of what was already bought.
The aircraft in question are set to be delivered starting in 2027. If the buyer actually exercises all those purchase options, reports noted, the total value of aircraft and service contracts would balloon to $4 billion, a win by any standard.
A New Model Global 6500?
Meanwhile, new reports suggest that Bombardier may be considering a new kind of Global 6500 aircraft, specifically geared toward maritime operations. A formal Memorandum of Understanding was signed between Bombardier and Leonardo (FINMY) at the recent Paris Air Show. The document in question calls for an 'Advanced Maritime Multi Mission Platform' to be developed, using the Global 6500 as its base.
Bombardier Global aircraft have already been involved in a range of mission types, including as an Electronic Intelligence (ELINT) aircraft, a Signals Intelligence (SIGINT) aircraft, and more. But the ultra-long-range Global 6500, with its ability to use a wide range of sensors and communications tools, may prove just the ticket for a potential winner in maritime operations as well. That should prove a nice boost for Bombardier going forward.
Is Bombardier Stock a Good Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on TSE:BBD.B stock based on six Buys and one Hold assigned in the past three months, as indicated by the graphic below. After a 35.95% rally in its share price over the past year, the average BBD.B price target of C$121.29 per share implies 14.63% upside potential.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
26 minutes ago
- Yahoo
Canadian grocers bet big on new stores – but can the market keep up?
Canada's largest grocers are ramping up store openings after years of slow growth, but simultaneous expansion across the industry could strain earnings. 'Acceleration across the industry will be problematic,' said John Zamparo, equity research analyst at Scotiabank, in a report. He predicts the move will result in one or more of lower returns on invested capital or margins, lower price-to-earnings multiples, higher lease costs or altered plans. 'It seems highly implausible to us that all five of the major grocers in Canada can concurrently accelerate square footage growth, particularly in a flat/declining population scenario with no downside,' he added. In the first quarter of 2025, Statistics Canada reported that population growth was so small it amounted to 0.0 per cent growth. While major grocers like Loblaw, Empire and Metro are investing in new store openings and renovations to meet shifting consumer preferences for discount and fresh-food formats, flat population growth, and therefore fewer new customers, could limit sales growth. Retail expert Bruce Winder says this likely accounts for the grocers' specific short-term expansion plans. 'They've left quite a bit of room for manoeuvring in subsequent years,' he said. Zamparo expects industry-wide square footage growth won't become topical for at least a few more quarters as projects get underway. Loblaw ( plans to open 80 new stores in 2025 as part of a $10 billion, five-year investment, with about 50 of those being hard discount locations like No Frills. It also plans to renovate over 300 grocery and pharmacy locations. Sobeys' parent Empire ( will add 24 new locations in fiscal 2025, including Farm Boy and FreshCo banners. Metro ( is expanding its discount banners in 2025, with seven new Food Basics stores planned in Ontario—three already open—and five new Super C locations launched in Quebec over the past year, a spokesperson told Yahoo Finance Canada. Both banners are set to continue growing into 2026 with more store openings planned. The company has also added a new Metro store in Ontario and will open a new Adonis specialty store. Metro is consistently renovating existing locations, though not all renovations will result in an increase in store size, the spokesperson says. Walmart Canada (WMT) is investing $6.5 billion to build dozens of new stores and expand its supply chain, starting with five new supercentres in Ontario and Alberta by 2027. Costco (COST), meanwhile, plans to open 27 new warehouses in fiscal 2025, at least two of which will be in Canada. Winder says major Canadian grocers are 'reading the room,' and see that many consumers are value-focused right now, and changing their store mix accordingly. And, since Costco and Walmart have gained greater market share over the past decade, the best way for grocers like Empire, Metro and Loblaw to fight back is through discount channels, he adds. Some of these new formats will also be high-end type grocers, like Farm Boy, adds Matthew Smith, executive vice-president of national retail investment at JLL. Over the past decade, major grocers 'took their foot off the gas' on building traditional suburban grocery stores, Smith says. And then Covid-19 happened, which also slowed expansions, and grocers pivoted to pickup and home delivery options. Now, they're catching up. Currently, there's a big push for grocers to open more traditional grocery stores, and also for developers to build more retail space to meet that demand, he says. However, the biggest challenge will be the cost, Smith says. 'Grocery in general is a margin business so rents can only be so high to make the business sense of operating a grocery store,' he said. And costs for land and construction have all climbed in the last 15 years, Smith says. There's likely more demand from the grocers than there is development going on, and since the grocers can only pay so much, it's going to be a struggle to develop at the pace they need. 'Unfortunately, the only way to be able to afford more rent is if they're making more money, and the only way to make more money is if they're charging more to the consumer,' he said. 'It's a razor's edge in terms of trying to develop these stores at the rents grocers can pay.' One way grocers may get around the high cost of building new stores is by moving into former box stores, while making their own modifications, Smith says, such as a former Bed, Bath and Beyond or Toys R Us. That's opening up new opportunities where they don't have to build a new store at their expense. Expansion in the form of new stores will ultimately lead to greater convenience, he says, adding: "More grocery stores closer to more people is a benefit for everyone." Sign in to access your portfolio
Yahoo
40 minutes ago
- Yahoo
Trump ends trade talks with Canada, threatens higher tariffs
President Trump said Friday he was suspending trade talks with Canada and would announce within a week a higher tariff rate on the U.S.'s northern neighbor. In a post on social media, Trump said he was cutting off negotiations with Canada after its government confirmed it would keep in place a digital services tax despite a recent G7 agreement on such levies. 'Based on this egregious Tax, we are hereby terminating ALL discussions on Trade with Canada, effective immediately. We will let Canada know the Tariff that they will be paying to do business with the United States of America within the next seven day period. Thank you for your attention to this matter!,' Trump wrote on Truth Social. Digital services taxes are taxes on tech companies from countries where their products are used. Canada is requiring the first payment of its tech tax on Monday, which will charge 3 percent of revenues above $14.57 million, or 20 million Canadian dollars. House Republicans' domestic agenda bill included a retaliatory measure known as Section 899 specifically to ward off countries from instituting digital taxes against U.S. tech giants. The bill called the taxes 'unfair' and 'discriminatory' and threatened a retaliatory U.S. tax of up to 20 percent on investors from countries with digital services taxes. However, following an agreement with the Group of Seven countries with big economies, Treasury Secretary Scott Bessent called on the Senate on Thursday to remove the U.S. retaliatory tax from their version of the bill. He said that an agreement had been reached that would '[preserve the U.S.] tax base' and that would exempt U.S. companies from a global minimum tax agreement. 'OECD Pillar 2 taxes will not apply to U.S. companies,' Bessent wrote on social media Thursday. Several international business groups representing foreign investors in the U.S. responded positively to the announcement. Canada's big tech tax has been in the works for a while. Some commentators on Friday thought President Trump's social media announcement indicated a lack of planning on the part of the administration, which delivered country-specific tariffs in early April. 'This is a sign the work process on trade from the 2024-2025 presidential transition to April 2nd was horrifically flawed in even more ways than we thought,' Alan Cole of the Tax Foundation wrote on Friday. Getting agreement on how to tax big tech, whose products are used globally but whose headquarters are largely in the U.S., has been the driving force behind different international taxation initiatives in recent years. One initiative has been proceeding at the Organisation for Economic Cooperation and Development (OECD), a group of wealthy countries, and there's another rival framework that's been slowly moving at the United Nations. The OECD framework has two main components, one that's about the location of where taxes are levied and another that puts in place a global minimum tax of 15 percent. The first component is dead in the water while the global minimum tax of 15 percent has been put in place internationally, although the U.S. has not implemented it due to Republican opposition. Republicans did leave the corporate alternative minimum tax (CAMT) negotiated under the Biden administration in place, leaving the domestic U.S. tax structure for international corporate taxation largely consistent with the international framework, multiple sources have told The Hill. 'Pillar 1 is dead, so what we get instead is a set of digital services taxes, and that might increase in number,' University of Michigan tax law professor Reuven Avi-Yonah told The Hill. 'The administration might try to impose tariffs and do other things in order to dissuade more countries from continuing.' Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Yahoo
an hour ago
- Yahoo
Canada's trade deficit narrows as exports rise, imports decline
-- Canada's merchandise trade deficit with the world narrowed from a record $7.6 billion in April to $5.9 billion in May, as exports increased and imports fell, according to Statistics Canada data released Thursday. Merchandise exports rose 1.1% in May, marking the first increase in four months. The growth was primarily driven by a 15.1% surge in exports of metal and non-metallic mineral products, particularly unwrought gold. Exports of unwrought gold, silver and platinum group metals increased by 30.1% to reach a record $5.9 billion, largely due to higher physical shipments of gold to the United Kingdom (TADAWUL:4280). Meanwhile, imports decreased by 1.6%, representing the third consecutive monthly decline. The decrease was led by a 16.8% drop in imports of metal and non-metallic mineral products, primarily due to lower imports of unwrought gold, silver, and platinum group metals, which fell by 43.2%. Exports to the United States decreased by 0.9% in May, the fourth consecutive monthly decline. This trend coincides with the recent implementation of tariffs on Canadian goods by the United States. Canada's share of exports to the United States was 68.3% in May, one of the lowest proportions on record, compared to a monthly average of 75.9% in 2024. In contrast, exports to countries other than the United States rose by 5.7% to reach a record high, with increased shipments to the United Kingdom, Singapore, and Italy. This growth was partially offset by lower exports to China. The merchandise trade surplus with the United States widened slightly from $3.1 billion in April to $3.2 billion in May, while the trade deficit with other countries narrowed from $10.7 billion to $9.1 billion. In the energy sector, exports of energy products decreased by 5.6% in May, with declines observed across all subcategories. Crude oil exports fell by 4.0%, affected by both lower prices and volumes. Consumer goods exports increased by 2.6%, driven by higher meat product exports to Japan and a rebound in prepared and packaged seafood products. However, consumer goods exports remained 18.5% below the high observed in January. When combining international trade in goods and services, Canada's total trade deficit with the world decreased from $8.0 billion in April to $6.6 billion in May. Related articles Canada's trade deficit narrows as exports rise, imports decline President Trump's views on Japan tariffs may be misinformed, says PM Ishiba What do China's surging exports mean for the world? Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
