Air Canada (TSE:AC) Stock Gets Price Target Trim from ATB Cormark Capital Markets

Air Canada (TSE:AC) had its price objective trimmed by ATB Cormark Capital Markets from C$45.00 to C$43.00 in a report released on Tuesday,BayStreet reports. The firm currently has an outperform rating on the stock.

A number of other analysts have also recently issued reports on AC. Scotiabank lowered their target price on Air Canada from C$37.50 to C$33.00 and set a “sector outperform” rating for the company in a research note on Thursday, October 15th. Jefferies Financial Group lowered shares of Air Canada from a “hold” rating to a “moderate sell” rating and cut their price target for the company from C$26.00 to C$19.00 in a research note on Monday, October 19th. Canaccord Genuity Group upgraded shares of Air Canada from a “hold” rating to a “buy” rating and reduced their price target for the company from C$29.00 to C$25.00 in a report on Thursday, October 22nd. National Bank Financial reduced their price target on shares of Air Canada from C$40.00 to C$37.00 and set an “outperform” rating for the company in a report on Thursday, October 15th. Finally, UBS Group increased their price objective on shares of Air Canada from C$24.00 to C$33.00 in a research report on Thursday, August 13th. Eight investment analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average target price of C$32.12.

Air Canada Stock Up 0.2%

TSE:AC opened at C$21.87 on Tuesday. Air Canada has a 1 year low of C$16.45 and a 1 year high of C$31.45. The company has a current ratio of 0.60, a quick ratio of 1.05 and a debt-to-equity ratio of 478.10. The stock has a market cap of C$5.53 billion, a price-to-earnings ratio of 16.69, a PEG ratio of 0.02 and a beta of 1.86. The stock has a 50-day moving average price of C$25.88 and a two-hundred day moving average price of C$22.34.

Air Canada (TSE:AC) last announced its quarterly earnings results on Thursday, October 29th. The company reported C$0.75 earnings per share (EPS) for the quarter. Air Canada had a return on equity of 16.92% and a net margin of 1.82%. The company had revenue of C$6.98 billion during the quarter. As a group, equities analysts expect that Air Canada will post 2.58 earnings per share for the current year.

Air Canada News Summary

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

• Positive Sentiment: Adjusted earnings beat estimates: Air Canada reported third-quarter adjusted earnings ahead of analyst expectations, supporting the bullish case for the shares. Air Canada Third-Quarter Adjusted Earnings Beat Estimates
• Positive Sentiment: Solid reported results: Air Canada posted C$0.75 in EPS and C$6.98 billion in quarterly revenue, with a 16.92% return on equity and a 1.82% net margin. The earnings release gives investors a clearer basis for evaluating the carrier’s profitability and outlook. Air Canada Earnings Report
• Positive Sentiment: Stifel maintains a Buy rating: Although Stifel Nicolaus reduced its price target from C$38 to C$32, the new target still implies substantial potential upside from the recent trading level, signaling continued confidence in Air Canada’s longer-term prospects.
• Neutral Sentiment: Winter network opportunities: Proposed or expanded winter routes could increase travel options and provide additional capacity-driven revenue opportunities, but the financial impact will depend on demand, pricing and execution. Which Winter Routes Could Boost Travel Options?
• Negative Sentiment: Analysts are lowering expectations: Scotiabank issued a negative earnings estimate, while ATB Cormark also cut its price target. These actions suggest lingering concerns about costs, demand or margins despite the earnings beat. Scotiabank Issues Negative Estimate ATB Cormark Cuts Price Target
• Negative Sentiment: U.S. route changes are unpopular with investors: Air Canada’s adjustments to some U.S. routes appear to be raising concerns about network strategy and possible effects on passenger volumes or revenue. Air Canada Is Switching Up Some of Its U.S. Routes
• Negative Sentiment: Operational incident adds a headline risk: Flight AC138 returned to Calgary after declaring an emergency, potentially renewing concerns about operational reliability, although the incident’s lasting financial impact is unclear. Air Canada Flight AC138 Emergency

Air Canada Company Profile

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.