Bombardier Inc. shares were primed for lift-off on Wednesday morning after the aerospace company announced a purchase agreement from Lufthansa for 30 of Bombardier's upcoming C-Series aircraft, a deal that is worth about $1.5-billion (U.S.). At the end of the day, though, the shares rose all of 14 cents, or 5.5 per cent.
Steve Hansen, an analyst at Raymond James, perhaps typified the market's relatively ho-hum reaction when he said that the long-awaited order certainly endorses the new aircraft and could get other orders flowing, since Lufthansa is an industry heavyweight.
Still, he remained only lukewarm on the stock, maintaining a "market perform" recommendation with a 12-month price target of $4 (Canadian). The shares closed on Wednesday at $2.71.
"We also note that 30 firm orders don't make for a successful program - not even close," Mr. Hansen said in a note. "Meanwhile, the commercial aerospace sector continues to grapple with severe headwinds that, by extension, have caused new aircraft orders to plummet. As such, we don't foresee a flood of new 'C' orders coming in anytime soon."
Follow us on Twitter: