The Globe and Mail reports in its Wednesday, Feb. 4, edition that National Bank Financial analyst Cameron Doerksen, following Exchange Income's announcement on Monday of the $43-million (U.S.) acquisition of MnM Aircraft Component Holdings, a Florida-based aftermarket aircraft parts supply/trading company, raised his share target to $110 from $109, exceeding the $97.25 average, with an "outperform" rating. The Globe's David Leeder writes in the Eye On Equities column that Mr. Doerksen says in a note: "Recall that following the acquisition of Canadian North last year, Exchange Income now operates a fleet of Boeing 737 narrow-bodies, so having an internal source for parts supply will help operations and lower costs for Canadian North. More importantly, the aftermarket parts market for narrow-bodies is much larger than the regional aircraft aftermarket, so with the financial backing of Exchange Income, MnM Aircraft will have a better opportunity to grow its third-party parts supply business. We expect Exchange Income to take a cautious approach to market expansion. As such, we would expect mainly incremental capital commitments in the near term as MnM Aircraft expands its parts inventory."
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