February 24, 2010 / 4:39 PM / 8 years ago

Bombardier wins big French train order -analyst

* Analyst says company wins 1 bln euro order

* Bombardier and France’s SNCF in talks since November

* Order could end up being worth more than 8 bln euros

TORONTO, Feb 24 (Reuters) - Bombardier Inc (BBDb.TO) has been awarded an order worth more than 1 billion euros ($1.36 billion) from French National Railways for 80 regional express trains and an option for 49 more, an analyst said in a note to clients on Wednesday.

A Bombardier Transportation spokesman was not immediately available for comment.

In November, SNCF, France’s publicly owned railway, said it was in exclusive talks with Montreal-based Bombardier to buy trains in a deal that could be worth as much as 8 billion euros and that an agreement could be signed in February.

“Although it was somewhat expected that Bombardier would eventually be awarded this first portion of the contract, we think it is likely that the company should see further follow on orders toward the (8 billion euro) French buildout,” said Rama Bondada, an analyst with Macquarie Securities in New York.

“We think this news reinforces our view that contract wins at Bombardier Transportation will drive the stock in the near term as aerospace weakness persists.”

Bondada said the first deliveries are expected to be made in mid-2013 and will continue into 2016.

SNCF said in November it had launched the tender for a total of 860 trains, which could enter service from June 2013.

The new trains would replace old rolling stock and boost its regional network, with traffic expected to continue to grow strongly, SNCF said.

Bombardier’s stock was up 6 Canadian cents at C$5.40 on the Toronto Stock Exchange shortly before midday.

$1=$1.05 Canadian Reporting by John McCrank; editing by Rob Wilson

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