CAE Stock Plunges 10.48% After RBC Downgrade

On May 22, 2025, CAE's stock experienced a significant drop of 10.48% in pre-market trading.

RBC Capital Markets downgraded CAE's stock rating from "Outperform" to "Sector Perform," citing a lack of near-term catalysts and a full valuation as the primary reasons for the downgrade. Analyst James McGarragle also reduced the price target from C$41 to C$38.

This downgrade comes as CAE's shares have been trading at a premium compared to its peers, making it one of the most expensive stocks in the sector. The lack of immediate growth drivers and the current valuation have raised concerns among investors, leading to the recent decline in stock price.