Versant Analyst Ugrades Bombardier to Buy

The 20% tumble in the share price of Bombardier Inc. (BDRAF.PK) since the beginning of June has presented an attractive entry point for investors, according to Cameron Doerksen, Versant Partners analyst.

With shares in the company closing Monday at C$6.93 on the Toronto Stock Exchange, there is a potential 31% upside to his target price of C$9, with several drivers making that goal achievable, he said.

In a note to clients, Mr. Doerksen said:

We continue expect solid earnings growth from Bombardier in the coming quarters.

Bombardier sizable backlog in both regional and business jets should support steady deliveries in the coming years, while its “recession  proof” transport division should continue to produce double-digit revenue growth with meaningful margin expansion through fiscal 2010, he said.

Mr. Doerksen raised his rating on the stock from a “hold” to a “buy” accordingly.