1506 ET - BMO analyst Fadi Chamoun says in a report that demand fundamentals for CAE's Civil and Defense segments remain strong over the medium term. In the near term, however, Chamoun believes growth may look softer as U.S. pilot training capacity remains elevated and CAE works through its own restructuring. This could create a gap between fundamentals and market expectations, the analyst says. Chamoun adds that the company is also run by a leadership team pursuing changes that could lift margins, returns, and free cash flow over the next several years. Chamoun says investors already anticipate some earnings volatility, and views any weakness as a buying opportunity. CAE is off 4.8% at C$41.90, but up 25% over the past 52 weeks. (adriano.marchese@wsj.com)

(END) Dow Jones Newswires

February 03, 2026 15:06 ET (20:06 GMT)

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