Air Canada Receives Raised Price Objective from CIBC
As of May 7, 2023, prominent banking institution CIBC has raised the price objective for Air Canada (TSE:AC) from C$30.00 to C$31.00. The move indicates an exceptional potential for growth and profitability, with a potential upside of 49.76% from the company’s previous close.
Although the recent quarterly earnings data released on February 17th showed a negative report of C($0.61) earnings per share for the quarter, missing analysts’ consensus estimates by a significant margin of C($0.20), there is still optimism among experts that Air Canada will perform well in the current fiscal year.
However, it is worth noting that Bloomberg’s top-rated and best-performing research analysts have suggested five stocks clients should consider buying before they become too mainstream. Curiously, Air Canada was not on this list.
Investors must weigh the recent positive developments regarding Air Canada and factor in Bloomberg’s analysis when determining whether to invest in the airline company or not.
Overall, while financial markets remain unpredictable, it is crucial to stay informed and continuously monitor market trends before making any investment decisions.
Air Canada’s Stock Performance and Analyst Recommendations: A Comprehensive Overview
Air Canada: An Overview of Stock Performance and Analyst Recommendations
Air Canada is a leading airline company that provides extensive air travel services to its customers. The company has registered remarkable growth over the years, a feat that has largely been made possible by its service innovation, expansion strategies, and strong financial performance. However, as with any other publicly traded company on Wall Street, Air Canada’s stock performance is subject to scrutiny from top-rated research analysts who offer their recommendations to investors.
Recently, several brokerages have weighed in on Air Canada’s stock, offering varying price targets and ratings for the company. BMO Capital Markets upped their price target from C$29.00 to C$33.00 while Raymond James dropped their price target from C$25.00 to C$23.00. Royal Bank of Canada raised their price target from C$20.00 to $22.00 and rated the stock “sector perform,” while TD Securities cut their price target from C$28.00 to C$26.00 and recommended a “buy” rating for the company.
Additionally, ATB Capital boosted its previously assigned price objective on shares of Air Canada from C$31.00 to C$38.00 in a research note issued on May 7th, 2023.
Currently, three analysts have given the stock a hold rating while seven others have assigned it a buy rating resulting in an average rating of “Moderate Buy” and an average target price of C$28.13 according to Bloomberg.com.
Despite recent market fluctuations that saw Air Canada trade up only slightly during mid-day trading on Friday hitting C$20.70 (compared to an average volume of 2,310,320 shares), the company has still maintained consistent goodwill among Wall Street investors largely based on its innovative strategies and solid business model.
With its domestic/US transborder/international airline services under the Air Canada Vacations and Air Canada Rouge brand names, the Canadian market continues to benefit from Air Canada while the company’s capacity purchase agreements on other regional carriers have helped to keep its financial performance stable at all times.
While Air Canada wasn’t included in a recent list of top-rated stocks whispered by analysts, it offers solid growth prospects for long-term investors who are willing to be patient and stay invested in a company with strong financial performance, excellent service delivery, and sound management practices. With continued business expansion plans, diverse offerings and good reputation in the aviation industry, investors remain optimistic about the future performance of Air Canada as evidenced by strong analyst recommendations.
