Bombardier stock: Buy as deleveraging drives value creation

Bombardier maintains a buy rating following strong Q2 results, with revenue up 6% to $2.15 billion and free cash flow of $228 million, supporting a $285.22 price target with 19% upside. Adjusted EBITDA rose 9% despite lower deliveries, while backlog increased to $21.8 billion and net leverage declined to 1.6x, enabling investments in output, Services, Defense, and potential M&A. Key risks include Q4 delivery concentration and supply chain constraints, though improved margins, leverage, and liquidity underpin the positive outlook.