- RBC Capital analyst Walter Spracklin lowered the price target for CAE Inc CAE to C$37 from C$40 while maintaining the Outperform rating on the shares.
- The analyst notes that CAE posted weaker than expected Q1 results and lowered the FY23 guidance.
- Related: CAE Shares Plunge On Mixed Q1 Performance
- Spracklin states that the updated guide implies a robust turnaround during the remainder of the year.
- While updating his estimates to align with guidance, the analyst notes that guidance is back-half weighted and assumes an improvement in labor, supply chain, and contract issues — much of which carries a degree of uncertainty / low predictability.
- Price Action: CAE shares closed lower by 2.93% at $20.85 on Thursday.
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