CAE's (CAE) fiscal 2030 adjusted segment operating income target falls short of estimates and appears to be "deliberately conservative," RBC Capital Markets said in a research note Friday.

Management said on the earnings call that the targets embed meaningful execution risk and reflect a cultural reset, RBC said.

On free cash flow, the brokerage said it continues to flag that the 100% cumulative cash conversion target excludes lease liability principal payments and stock-based compensation, both of which are deducted from the firm's FCF calculation.

Analysts said, however, that they think the fiscal 2030 targets are achievable, with fiscal 2027 expected to be a transition year and fiscal 2028 as a plausible inflection point, although limited near-term visibility is likely to weigh on the stock.

RBC reduced its price target to 36 Canadian dollars ($26.07) from CA$42, and maintained its sector perform rating.

Shares of CAE were up 3.6% in Tuesday trading.

Price: 23.99, Change: +0.83, Percent Change: +3.58