Air Canada: Solid Near-Term Execution but Limited Earnings Visibility Supports Hold Rating

Sheila Kahyaoglu, an analyst from Jefferies, maintained the Hold rating on Air Canada. The associated price target is C$18.00.

Sheila Kahyaoglu has given his Hold rating due to a combination of factors including solid near‑term execution but limited visibility on a sustained earnings inflection. While Air Canada’s recent quarter modestly exceeded expectations on both revenue and adjusted profitability, the upside versus estimates was not large enough to fundamentally change the medium‑term risk‑reward profile.

Moreover, the company’s 2026 guidance points to only modest operating income contribution once sale‑leaseback effects are excluded, which tempers enthusiasm about forward cash generation. Although the stock trades at a low multiple on FY2 EV/EBITDA relative to the broader market, this discount is broadly in line with its own historical norm, suggesting the valuation already reflects structural and cyclical risks and supports a neutral, rather than more constructive, stance.

In another report released on February 4, TipRanks – xAI also reiterated a Hold rating on the stock with a C$20.00 price target.

Based on the recent corporate insider activity of 47 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of ACDVF in relation to earlier this year.