Air Canada (TSE:AC) Stock Gets Price Target Reduction from Scotia

Air Canada (TSE:AC) had its target price cut by Scotia from C$33.00 to C$31.00 in a research note released on Friday morning,BayStreet reports. They currently have a sector outperform rating on the stock.

Other equities analysts have also recently issued reports about the company. BMO Capital Markets lifted their price objective on Air Canada from C$30.00 to C$37.00 and gave the company an “outperform” rating in a report on Wednesday, August 12th. Royal Bank Of Canada increased 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. National Bank Financial lowered their price target on Air Canada from C$37.00 to C$33.00 and set an “outperform” rating for the company in a research report on Friday. Jefferies Financial Group lowered 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. Finally, Canaccord Genuity Group raised Air Canada from a “hold” rating to a “buy” rating and decreased their target price for the company from C$29.00 to C$25.00 in a research note on Thursday, October 22nd. Eight analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat.com, Air Canada currently has an average rating of “Moderate Buy” and a consensus price target of C$31.00.

Air Canada Trading Down 7.7%

Shares of Air Canada stock opened at C$20.19 on Friday. The company has a current ratio of 0.64, a quick ratio of 1.05 and a debt-to-equity ratio of 517.55. Air Canada has a 12-month low of C$16.45 and a 12-month high of C$31.45. The company has a 50-day moving average of C$25.70 and a two-hundred day moving average of C$22.35. The stock has a market cap of C$5.10 billion, a PE ratio of 20.39, a price-to-earnings-growth ratio of 0.02 and a beta of 1.86.

Air Canada (TSE:AC) last announced its quarterly earnings data on Thursday, October 29th. The company reported C$0.75 earnings per share for the quarter. The business had revenue of C$6.98 billion during the quarter. Air Canada had a net margin of 1.23% and a return on equity of 12.10%. On average, research analysts anticipate that Air Canada will post 2.58 EPS for the current fiscal year.

Air Canada News Roundup

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

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.