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Highlights
- Bombardier offers Learjet, Challenger and Global business jets and they vary from light to large categories.
- Bombardier has announced that it has secured an order for 20 Challenger 3500 business jets.
- The Bombardier (BBD.B) stock has expanded by 360 per cent in the last nine months.
Stocks of Bombardier Inc. (TSX:BBD.B) jumped 5.7 per cent at market open and were trading at C$ 2.21 per share on Thursday, September 30. The Montreal-based company is involved in manufacturing and selling business aircraft.
Bombardier offers Learjet, Challenger and Global business jets and they vary from light to large categories. The company has a presence in North America, Europe and the Asia-Pacific region and most of its revenues are generated in North America.
The surge in the share prices came as Bombardier announced before market open that it has secured an order of 20 Challenger 3500 Business Jets. The company said that the demand for its Challenger 3500 aircraft is in full swing as the company has received its largest business jet order for this year.
Bombardier said in a statement that it is having sustainable features in the business jets through its innovative technologies and that the Challenger 3500 business jet has evolved from the highly successful Challenger 350 aircraft.
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The latest order could boost the company's prospects as the order transaction would represent a value of US$ 534 million, based on the current listing. Peter Likoray, the senior vice president for new aircraft sales, said that the latest order will reinforce the supremacy of the company's platform in the super mid-size market.
Is the Bombardier (BBD.B) stock a buy?
The Bombardier stock clocked a 52-week high of C$ 2.13 per share on Wednesday, September 29, and it has breached this figure at the start of the trading session on September 30.
The BBD.B stock has catapulted by 360.4 per cent year-to-date (YTD) and during this period it outpaced the growth of the Toronto Stock Exchange 300 Composite Index.
As the company is receiving new orders, and the stock could further be boosted in the coming months.
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Bottom line
In the second quarter of this year, Bombardier raised its full-year guidance and said it hopes to deliver 120 aircrafts and its revenues could increase to US$ 5.8 billion.
The company also expects that its adjusted EBITDA will increase from US$ 500 million to US$ 575 million.
