Thomas Fitzgerald CFA, an analyst from TD Cowen, maintained the Buy rating on Air Canada. The associated price target was raised to C$26.00.
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Thomas Fitzgerald CFA has given his Buy rating due to a combination of factors that point to improving fundamentals and earnings power for Air Canada. He highlights solid revenue momentum, particularly in corporate and international travel, along with expectations for higher loads and yields in the first half of FY26, supported by strong trans-Atlantic demand and stabilizing Pacific pricing.
He also points to margin expansion potential as unit costs normalize after near-term pressures from labor and fleet investments, with new aircraft expected to deliver scale and efficiency benefits in FY27–FY28. In addition, he notes supportive capital allocation through the NCIB, growth opportunities in corporate and cargo volumes as Canada diversifies trade, and a robust Aeroplan franchise, all of which underpin his increased C$26 price target based on a 2027 EV/EBITDA multiple.
According to TipRanks, Fitzgerald CFA is a 5-star analyst with an average return of 27.3% and a 79.55% success rate. Fitzgerald CFA covers the Industrials sector, focusing on stocks such as American Airlines, Alaska Air, and Delta Air Lines.
In another report released on February 13, RBC Capital also maintained a Buy rating on the stock with a C$25.00 price target.