Air Canada: Strategic Growth and Financial Outlook Drive Buy Rating

In a report released yesterday, Fadi Chamoun from BMO Capital maintained a Buy rating on Air Canada (ACDVF – Research Report), with a price target of C$29.00.

Fadi Chamoun has given his Buy rating due to a combination of factors that highlight Air Canada’s strategic positioning and growth potential. The company is focusing on its strategic priorities, including fleet modernization and expansion, which are expected to enhance its competitive market position. The delivery of new aircraft such as the A220, A321XLR, and B787-10 will support growth in various markets, including secondary European markets and U.S. transborder routes, where Air Canada has identified capacity deficits.
In addition to strategic growth initiatives, near-term trends are supportive of Air Canada’s financial targets for 2025. Encouraging booking trends for the summer season, stable pricing, and favorable CAD/US$ exchange rates are expected to positively impact financial results. While there may be near-term volatility due to the expiration of the SIB and geopolitical risks, the medium-term outlook remains compelling for investors willing to navigate these fluctuations. Air Canada’s focus on network optimization and cost control measures is anticipated to drive EBITDA growth to approximately $5 billion by 2028.

According to TipRanks, Chamoun is a 5-star analyst with an average return of 13.4% and a 63.66% success rate. Chamoun covers the Industrials sector, focusing on stocks such as XPO, Saia, and Air Canada.