CAE Inc. (CAE) Capitalizing on Generational Investments in the Defense Sector

Cae Inc. (NYSE:CAE) is one of the best breakout stocks to invest in. On November 14, TD Cowen’s Tim James reaffirmed a Buy rating on Cae Inc. (NYSE:CAE) with a price target of C$46.00, citing strong long-term potential driven by solid performance in the Defense segment and a conservative FY2026 outlook. He highlighted CAE’s robust business model, expected ROIC growth, and management’s focus on operational efficiency and portfolio optimization. Despite headwinds in the Civil segment, including OEM production challenges and soft travel demand, the company’s transformation strategy and disciplined capital allocation continue to support a favorable investment case.

On November 11, Cae Inc.’s Chief Executive Officer Mathew Bromberg reiterated that it is well-positioned to capitalize on generational investments in the defense sector in the US, Canada, and Europe. Likewise, the executive expects the company to deliver higher returns, more substantial cash flow, and sustainable shareholder value.

The remarks follow the company’s strong second-quarter fiscal 2026 results, with revenues of $1.24 billion, compared to $1.14 billion in the same quarter of the prior year. The company also reported earnings per share of $0.23, a significant improvement from $0.16 delivered in the same quarter last year.

The better-than-expected results came from Cae signing a training solutions contract valued at $592.8 million for a range of long-term commercial and business aviation training. Its defense unit also booked orders worth $555.8 million. Cae is also capitalizing on strong and durable fundamentals in a secular growth market for aviation training solutions. In October, it signed a deal to deliver a Boeing 737 Max full-flight simulator to the training group of Malaysia Airlines Group.

CAE Inc. (NYSE:CAE) is a technology company that provides simulation, training, and critical operations solutions for the aviation and defense industries. It manufactures advanced flight simulators and provides training services for the civil aviation industry.

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Disclosure: None. This article is originally published at Insider Monkey.