TD Securities raised its price target on CAE Inc. (CAE.TO) to $53 from $46 on Monday.

Analyst Tim James maintained a Buy rating on shares of the Montreal-based flight training company.

"We are incrementally positive on the outlook for CAE's valuation and long-term fundamentals," James said in a note to clients.

"Commercial air travel and related CAE drivers, defense spending intentions, and comparable A&D valuations all support further share price upside for CAE," the analyst said.

"The business franchise, management, and strategy appear set to drive equity value creation through the balance of the decade," James said.

"The current environment of increasing global defense spending is very positive," the analyst said. "The fact that Canada has plans to ramp up spending at high rates to historically unprecedented levels bodes especially well for CAE given our view of the addressable market it has for opportunities in Canada."

James said he estimates Canadian defence spending could grow at 10-15% annually for 5-10 years.

(MT Newswires covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www.mtnewswires.com/contact-us)