BMO Sees Bombardier Stock Undervalued by Over $70 CAD

Bombardier's Class B shares (ISIN CA0977512007) are trading below their potential, according to BMO Capital Markets. The broker maintains its Outperform rating and a price target of 375 Canadian dollars per share, which represents a roughly 23 percent upside from the current price of 304.30 Canadian dollars.

This gap between the projected value and the current market price is significant, especially considering Bombardier's expected 1.4 billion Canadian dollar free cash flow in fiscal year 2026. BMO's confidence in this projection is a key factor supporting its Outperform stance on the stock.

The business aviation segment, where Bombardier operates, has seen rising demand in the first half of 2026 compared to the previous year. This trend suggests a supportive environment for the company's Global and Challenger families of aircraft, which are crucial assets for Bombardier's growth and free cash flow generation.