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Air Canada Launches $500 Million Share Buyback to Enhance Shareholder Value

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Confident Investing Starts Here:

Air Canada ( (TSE:AC) ) just unveiled an announcement.

Air Canada has announced a substantial issuer bid to repurchase up to $500 million of its shares through a modified Dutch auction. This move is intended to capitalize on the current undervaluation of its shares, enhance shareholder value, and address shareholder dilution from past financing decisions during the COVID-19 pandemic. The offer allows shareholders to tender their shares at specified prices or agree to a purchase price determined by the auction, with the company funding the buyback from available cash.

The most recent analyst rating on (TSE:AC) stock is a Buy with a C$28.00 price target. To see the full list of analyst forecasts on Air Canada stock, see the TSE:AC Stock Forecast page.

Spark’s Take on TSE:AC Stock

According to Spark, TipRanks’ AI Analyst, TSE:AC is a Outperform.

Air Canada’s stock is moderately attractive, supported by strong technical momentum and undervaluation based on P/E ratio. However, financial risks due to high leverage and declining profit margins, along with market uncertainties highlighted in the earnings call, warrant caution.

To see Spark’s full report on TSE:AC stock, click here.

More about Air Canada

Air Canada is a leading airline company in the aviation industry, primarily offering passenger and cargo air transportation services. It focuses on both domestic and international markets, aiming to maintain a strong balance sheet and generate shareholder value through strategic capital allocation.

Average Trading Volume: 3,772,596

Technical Sentiment Signal: Hold

Current Market Cap: C$6.48B

For a thorough assessment of AC stock, go to TipRanks’ Stock Analysis page.

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