Shares of

Bombardier Inc.

, already nearly up 105 per cent since the spring on some tariff clarity, got another boost after analysts at RBC Dominion Securities Inc. significantly raised their price target for the private jet maker.

“BBD (Bombardier) is our top idea,” analyst James McGarragle and senior associate Louis Derlis said in a note on Monday while raising their target to $175 from $108.

The Montreal-based manufacturer’s shares were trading for around $154 midday Tuesday.

Bombardier’s shares jumped 21 per cent last Wednesday after announcing a US$1.7-billion

purchase of 50 private jets

from an anonymous buyer, a deal that could morph into a US$4-billion contract if the buyer exercises an option for 70 more aircraft.

The company’s shares ended last week up 30 per cent and were the top gainer on the S&P/TSX composite index.

Other analysts have raised their price targets, too. For example, Fadi Chamoun at BMO Capital Markets raised his price target for the shares to $150 from $130, while Benoit Poirier at Desjardins Securities raised his target to $175.

“The business aviation cycle remains on firm footing and the recent significant order for 50 aircraft announced on June 30 further solidifies the outlook,” Chamoun said in a note.

Bombardier’s shares were weighed down by tariff worries earlier in the year, but Bloomberg Intelligence analysts said those concerns lifted in early April because the manufacturer’s aircraft are compliant with the

Canada-United States-Mexico Agreement (CUSMA).

RBC’s analysts are sticking with their second-quarter earnings estimates, calling for earnings before income tax, depreciation and amortization (EBITDA) of $336 million, which is below analysts’ average of $346 million, on “lower margins due to more manufacturing versus services mix.”

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Their EBITDA estimate for 2025 is $1.58 billion (above the average of $1.6 billion) and they pegged free cash flow at $795 million, which is at the high end of the company’s guidance of $500 million to $800 million, “which we now see upside to given the recent order announcement.”

They also said markets are underestimating Bombardier’s ability to grow free cash flow at double-digit compound annual growth rates, calling the outlook “under-appreciated at current levels (despite the recent uptick in the shares).”

• Email: gmvsuhanic@postmedia.com

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