- Bombardier (OTCQX:BDRAF, OTCQX:BDRBF) CEO Allan Bellemare is confident that the venture can resolve its trade dispute with Boeing (NYSE:BA) as it would enable CSeries aircraft to be built at Airbus' (OTCPK:EADSY) plant in Alabama. That would allow the plane to avoid duties of roughly 300%, which the U.S. government has threatened to impose due to "illegal state aid."
- Credit Suisse (SIX:CSGN) views the deal as a net positive for both players. Bombardier should enjoy higher sales and lower costs than it would have captured alone, while it would expand Airbus' product range at a relatively small cost. The firm reiterated its Outperform rating on Bombardier, while raising its price target to C$3.50 from C$3.25.
- Meanwhile, Boeing (BA) has blasted the partnership, stating it "looks like a questionable deal between two heavily state-subsidized competitors" and the CSeries "still represents unfair competition."
- Bombardier shares are up almost 20% in early trade, Airbus ADRs are (OTCPK:EADSY) 3.2% higher, while Boeing skips the runway - down 1%.
- Previously: France welcomes Airbus-Bombardier deal (Oct. 17 2017)
- Previously: Bombardier to roll CSeries program into joint venture with Airbus (Oct. 16 2017)
- Now read: Boeing August Order Report: No Surprises
Original article