2024-01-08 22:17:44
(Photo: Getty Images)
Important facts to remember regarding Bombardier stock (BBD.B, $55):
Bombardier is now a full-fledged business jet maker, with an eye on profitability and a new product that aims to take market share.
Gulfstream still controls 48% of the market, compared to Bombardier’s 35%, and Gulfstream is much more profitable at present.
Gulfstream, Bombardier’s closest competitor, is expected to introduce a model with a similar range in 2024. Meanwhile, during testing, Bombardier’s Global 8000 became the first business jet to break the barrier of sound, using sustainable jet fuel (SAF).
Bombardier is not as profitable today, but the discount is greater
We have to be lenient with Bombardier, however, as the company completed the sale of its transportation business in 2021, and is now looking for better profitability. It is important to work on margins in the private jet sector where growth might only be around 1% and prices might increase similar to inflation.
As a private jet investor, you may not get massive growth and dividends, but you will be in an elite market with high barriers to entry and, if you get it right moment, a reduced price ticket for margins that might well take off.
A text by Andrew Willis, published in English on Morningstar
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