CIBC Capital Markets raised its price target on three Canadian aerospace and aviation companies ahead of their quarterly results.

Analyst Krista Friesen increased her targets on Air Canada (AC.TO) to C$26 from C$22, Bombardier (BBD-B.TO) to C$365 from C$295, and CAE (CAE.TO) to C$47 from C$44. Air Canada and CAE have Outperformer ratings, while Bombardier is Neutral.

"Passenger traffic trends remained constructive, business aviation activity remained healthy, MRO demand continued to benefit from favourable conditions, and defence activity remained elevated," the analyst said.

"While elevated jet fuel prices remain a headwind for airline profitability, we will be looking for commentary on pricing power and fuel-cost recapture and the industry's ability to avoid demand destruction."

(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)