CAE Inc. (CAE.TO) was downgraded to Hold from Buy at TD Securities on Monday.

Analyst Tim James raised his price target on shares of the Canadian manufacturer of simulation technologies and aviation training services to $35 from $34.

James said the downgraded is due to share price appreciation.

"We view 56% share price move off 2024 bottom as appropriately discounting Defense segment progress and margin outlook, along with the cyclical backdrop and sentiment shifts related to recent initiatives aimed at improving returns on capital. Immaterial estimate changes reflecting recent industry data," the analyst said in a note to clients.

"We believe CAE is poised to benefit from cyclical growth in civil air travel... and related aircraft demand," James said.

"At this time, we believe recent positive catalysts (Q2/F25 results, corporate initiatives, activists shareholder, contract wins) have pushed the stock to a level that should result in consolidation over the coming months as investors resume focus on valuation multiples relative to comps and historical precedents."

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