The Globe and Mail reports in its Friday, Feb. 16, edition that RBC Dominion Securities analyst James McGarragle believes negative sentiment surrounding CAE's defense margins is "creating an attractive opportunity." The Globe's David Leeder writes that although Mr. McGarragle lowered his revenue and earnings projections for fiscal years 2024 and 2025, he maintained his "outperform" recommendation and share target of $34. Analysts on average target the shares at $34.75. Mr. McGarragle says in a note: "Focus from [Wednesday's] results (and driver of the share price weakness in our view) was commentary on the defense outlook, which represented downside versus prior street expectations. While this should not be ignored, we remind investors defense only represents 15 per cent of CAE's business. Commentary on civil (the other 85 per cent) suggests a robust demand and solid margin outlook. We value the civil segment at $28 (12 times EV/ EBITDA multiple), which implies a negative $2.50 is being assigned to defense, which we see as unwarranted. ... We note that CAE operates the world's largest civil aviation training network, which we believe acts as a significant barrier to entry as well as a key differentiator."