Royal Bank Of Canada Downgrades CAE (NYSE:CAE) to Hold

CAE (NYSE:CAE) (TSE:CAE) was downgraded by equities research analysts at Royal Bank Of Canada from a “moderate buy” rating to a “hold” rating in a research note issued to investors on Monday,Zacks.com reports.

A number of other equities analysts have also recently weighed in on CAE. TD Securities reaffirmed a “buy” rating on shares of CAE in a research report on Tuesday, February 17th. Stifel Nicolaus assumed coverage on shares of CAE in a research note on Wednesday, March 4th. They issued a “buy” rating for the company. Weiss Ratings reissued a “hold (c+)” rating on shares of CAE in a research note on Friday, May 15th. Zacks Research raised shares of CAE from a “strong sell” rating to a “hold” rating in a research note on Wednesday, May 13th. Finally, Canaccord Genuity Group assumed coverage on shares of CAE in a report on Friday, March 13th. They set a “buy” rating on the stock. One equities research analyst has rated the stock with a Strong Buy rating, six have given a Buy rating and four have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus target price of $32.00.

CAE Stock Performance

NYSE:CAE opened at $23.80 on Monday. The company has a debt-to-equity ratio of 0.55, a quick ratio of 0.77 and a current ratio of 0.96. The stock has a market capitalization of $7.65 billion, a P/E ratio of 33.52, a PEG ratio of 2.60 and a beta of 1.03. The company has a 50 day moving average price of $26.33 and a 200 day moving average price of $28.60. CAE has a fifty-two week low of $22.76 and a fifty-two week high of $34.24.

CAE (NYSE:CAE) (TSE:CAE) last posted its quarterly earnings data on Thursday, May 21st. The aerospace company reported $0.31 earnings per share for the quarter, topping analysts’ consensus estimates of $0.30 by $0.01. The firm had revenue of $953.79 million during the quarter, compared to analysts’ expectations of $924.83 million. CAE had a net margin of 6.36% and a return on equity of 7.45%. The firm’s quarterly revenue was up 4.0% on a year-over-year basis. During the same quarter last year, the company posted $0.47 EPS. CAE has set its FY 2027 guidance at 0.880-0.930 EPS. Equities research analysts forecast that CAE will post 0.91 EPS for the current year.

Institutional Investors Weigh In On CAE

A number of hedge funds have recently added to or reduced their stakes in CAE. Norges Bank acquired a new stake in CAE during the 4th quarter worth approximately $98,377,000. FIL Ltd lifted its holdings in CAE by 21.9% during the 4th quarter. FIL Ltd now owns 10,422,522 shares of the aerospace company’s stock worth $316,955,000 after buying an additional 1,874,739 shares in the last quarter. TD Asset Management Inc lifted its holdings in CAE by 82.5% during the 4th quarter. TD Asset Management Inc now owns 2,704,860 shares of the aerospace company’s stock worth $82,364,000 after buying an additional 1,222,581 shares in the last quarter. Morgan Stanley lifted its holdings in CAE by 114.0% during the 4th quarter. Morgan Stanley now owns 2,059,644 shares of the aerospace company’s stock worth $62,654,000 after buying an additional 1,097,193 shares in the last quarter. Finally, Goldman Sachs Group Inc. lifted its holdings in CAE by 142.6% during the 1st quarter. Goldman Sachs Group Inc. now owns 1,709,480 shares of the aerospace company’s stock worth $42,036,000 after buying an additional 1,004,820 shares in the last quarter. 67.36% of the stock is currently owned by institutional investors and hedge funds.

Trending Headlines about CAE

Here are the key news stories impacting CAE this week:

• Positive Sentiment: Scotiabank raised its FY2027 EPS estimate to $0.91 from $0.88 and kept an Outperform rating, signaling confidence in CAE’s medium-term earnings trajectory.
• Positive Sentiment: Scotiabank also lifted its near-term Q1 2027, Q2 2027, Q3 2027 and FY2030 earnings estimates, and kept FY2028–FY2030 forecasts relatively strong, which supports the long-term growth story.
• Neutral Sentiment: The company’s recent earnings-call recap emphasized a “reset year” and longer-term ambition, suggesting management is balancing short-term execution with future growth plans. CAE Inc. Earnings Call: Reset Year, Long-Term Ambition
• Negative Sentiment: Scotiabank trimmed its Q4 2027, Q2 2028, Q4 2028, and FY2029 EPS estimates, indicating some caution around later-period profitability.
• Negative Sentiment: RBC’s cut to a Sector Perform rating from a more bullish stance may have added to investor caution, even though the new target still implies meaningful upside.

CAE Company Profile

CAE Inc is a global leader in training and simulation technologies, headquartered in Montréal, Canada. The company specializes in the design and manufacture of high-fidelity flight simulators and training systems for civil aviation, defense and security, and healthcare markets. Leveraging advanced software and hardware integration, CAE delivers comprehensive training solutions that address pilot proficiency, mission readiness and patient safety across a wide range of platforms.

In civil aviation, CAE partners with major airlines, aircraft manufacturers and flight schools to provide pilot training services, courseware development and crew scheduling solutions.