Trump's Bombardier Threat Poses High Potential Impact
Dow Jones09-09 00:43
1243 ET - While the trade threat has yet to be translated into formal policy, an outright ban on U.S. sales would deal a severe blow to Canadian business jet maker Bombardier, says Scotiabank analyst Konark Gupta. The analyst says it is "too early to assess the fundamental risk as BBD has thus far navigated the geopolitical uncertainties without any major demand impact." The headline risk is clear, however, with the stock is down 4%, though Gupta notes that it is "similar to early 2025 (tariff risks) and early 2026 (de-certification and tariff threats)." He adds that if the threat turns into a ruling, "the potential impact would be significant, given the U.S. accounts for the majority of BBD's business."
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