Can CAE fly higher?

The outlook for Montreal-based flight-simulator manufacturer CAE Inc. has certainly improved since it embarked on an ambitious restructuring last year. The efforts are reflected in recently released third-quarter results, which saw earnings from its core business more than double, to 9¢ a share from 4¢ a year earlier. Some analysts suggest the company is ready to take advantage of an upturn in the airline industry, giving the stock a Buy rating. But others are more cautious. Canaccord Capital analysts Robert Fay and Tom Varesh say in a report that they “remain positive” about CAE, but feel the current stock price already more than reflects the upside. They are maintaining their Sell recommendation and a target of $7.50.