Air Canada (AC.TO) – What Are Brokerages Thinking About This Stock?

by · The Markets Daily

Shares of Air Canada (TSE:AC – Get Free Report) have been given a consensus rating of “Moderate Buy” by the eleven brokerages that are currently covering the company, MarketBeat reports. One equities research analyst has rated the stock with a sell rating, two have given a hold rating and eight have issued a buy rating on the company. The average twelve-month price objective among brokers that have issued ratings on the stock in the last year is C$31.00.

AC has been the topic of a number of research analyst reports. Jefferies Financial Group downgraded Air Canada from a “hold” rating to a “moderate sell” rating and reduced their target price for the stock from C$26.00 to C$19.00 in a report on Monday, October 19th. BMO Capital Markets cut their target price on Air Canada from C$35.00 to C$33.00 and set an “outperform” rating on the stock in a research note on Friday. Stifel Nicolaus decreased their price objective on shares of Air Canada from C$38.00 to C$32.00 and set a “buy” rating for the company in a report on Thursday. Scotiabank reduced their target price on shares of Air Canada from C$37.50 to C$33.00 and set a “sector outperform” rating for the company in a report on Thursday, October 15th. Finally, Royal Bank Of Canada raised their price objective on Air Canada from C$28.00 to C$37.00 and gave the stock an “outperform” rating in a research report on Thursday, August 13th.

View Our Latest Stock Report on AC

Air Canada Price Performance

AC opened at C$20.19 on Friday. Air Canada has a twelve month low of C$16.45 and a twelve month high of C$31.45. The firm has a market cap of C$5.10 billion, a price-to-earnings ratio of 20.39, a PEG ratio of 0.02 and a beta of 1.86. The company has a current ratio of 0.64, a quick ratio of 1.05 and a debt-to-equity ratio of 517.55. The company has a fifty day simple moving average of C$25.70 and a 200 day simple moving average of C$22.35.

Air Canada (TSE:AC – Get Free Report) last issued its quarterly earnings results on Thursday, October 29th. The company reported C$0.75 EPS for the quarter. The firm had revenue of C$6.98 billion during the quarter. Air Canada had a return on equity of 12.10% and a net margin of 1.23%. Equities research analysts expect that Air Canada will post 2.58 EPS for the current fiscal year.

Key Air Canada News

Here are the key news stories impacting Air Canada this week:

  • Positive Sentiment: Air Canada reported third-quarter earnings of C$0.75 per share on C$6.98 billion in revenue, while adjusted earnings beat expectations. The results provide evidence of resilient operating performance and may support the bullish case for the shares. Air Canada Third-Quarter Adjusted Earnings Beat Estimates
  • Neutral Sentiment: Scotia, National Bank Financial and BMO Capital Markets lowered their price targets to C$31, C$33 and C$33, respectively, but retained positive ratings ranging from “sector outperform” to “outperform.” Stifel Nicolaus also cut its target to C$32 while maintaining a “buy” rating. The reductions signal more cautious estimates, but the targets imply roughly 54%–64% upside from recent levels. Analyst Recommendations
  • Neutral Sentiment: Coverage is focusing on Air Canada’s winter route changes and potential travel-market opportunities. Expanded or better-optimized routes could support demand, but changes to U.S. service are being closely scrutinized by investors. Which Winter Routes Could Boost Travel Options?
  • Negative Sentiment: Reports that Air Canada is switching some U.S. routes appear to have unsettled investors, raising questions about network demand, capacity allocation and near-term revenue growth. Air Canada Is Switching Up Some of Its U.S. Routes
  • Negative Sentiment: Scotiabank issued a negative earnings estimate for Air Canada, while ATB Capital Markets also reduced its price target, adding to the cautious tone surrounding the stock. Scotiabank Issues Negative Estimate

Air Canada Company Profile

(Get Free Report)

Air Canada is Canada’s largest airline, the country’s flag carrier and a founding member of Star Alliance, the world’s most comprehensive air transportation network. Headquartered in Montréal, Air Canada provides scheduled service directly to more than 180 airports in Canada, the United States and Internationally on six continents. It holds a Four-Star ranking from Skytrax. Air Canada’s Aeroplan program is Canada’s premier travel loyalty program, with more than 10 million members worldwide. Members can earn or redeem points on the world’s largest airline partner network of more than 50 airlines, plus through an extensive range of merchandise, hotel and car rental partners.

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