Shares of Bombardier (TSE:BBD.B) continue to drop today, after touching their lowest point since 2004 yesterday, losing an additional 4% this morning to trade below C$2/share.
Shares are trading at less than half of the 52-week high reached last December. The stock’s negative performance comes in the midst of a bullish bounce in New York and Toronto markets.
The gloom may be related to new potential 18-24 month delays in the company’s Global 7000 and 8000 business jet series, which would add to losses already incurred by heavy delays on its C-series airliner program.
Indeed, while Boeing and Airbus were taking in another round of record orders at the Paris air show last June, Bombardier did not secure any additional C-series contracts, even if it performed very successful demonstration flights.
The last C-series was sold last September, according to Bloomberg, but now existing buyers are either re-negotiating the terms of sale or canceling their orders altogether, worried that deliveries would take too long.
Meanwhile, the analyst consensus, as cited by Bloomberg, is a mix of six ‘buy’ and 10 ‘hold’ recommendations with only four urging a ‘sell’. The general consensus target price is C$2.85.
Bombardier will announce its next quarterly results on July 30.