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Strategies & Market Trends : Dino's Bar & Grill

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To: Goose94 who wrote (50291)10/18/2018 8:41:09 AM
From: Goose94Read Replies (1) of 203541
 
Bombardier (BBD.B-T) CIBC World Markets analyst Kevin Chiang in a research report Mr. Chiang, however, believes airlines will continue to raise fares to off-set increased input costs. Mr. Chiang sees them "benefiting from a strong demand environment."

Mr. Chiang says in a note: "We are confident that the sector will be able to recoup the lost margins from higher jet fuel prices. Given airfare and jet fuel prices are highly correlated, the ability to maintain ex. fuel cost discipline is key to the North American airlines maintaining their structurally higher margins."

After adjusting his estimates "primarily to reflect a more bullish outlook on oil and changes to our FX assumption," Mr. Chiang changed his share target for Bombardier to $5.75 from $6. Analysts on average targeted the Class B shares at $5.95. Mr. Chiang continues to rate Bombardier "outperform."
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