Analyst Fadi Chamoun from BMO Capital reiterated a Buy rating on Air Canada (ACDVF – Research Report) and keeping the price target at C$31.00.
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Fadi Chamoun’s rating is based on Air Canada’s strong financial performance and strategic initiatives. The company reported better than expected results for the fourth quarter of 2024, with adjusted EBITDA significantly surpassing forecasts due to higher-than-anticipated passenger yields and a robust demand environment. This strong performance has enabled Air Canada to maintain a solid financial position, allowing it to continue distributing excess cash to shareholders while investing in growth and fleet modernization.
Moreover, Air Canada is well-positioned to mitigate potential risks associated with a challenging economic environment, such as escalating trade tensions. The company’s strategic focus on transitioning from network restoration to optimization is expected to drive growth and enhance operational efficiency. Additionally, Air Canada’s ongoing share repurchase program and plans for further buybacks demonstrate its commitment to maximizing shareholder value. These factors contribute to Fadi Chamoun’s confidence in rating Air Canada with a Buy recommendation.
According to TipRanks, Chamoun is a 5-star analyst with an average return of 13.9% and a 61.44% success rate. Chamoun covers the Industrials sector, focusing on stocks such as JB Hunt, CH Robinson, and CAE.
In another report released yesterday, TD Cowen also reiterated a Buy rating on the stock with a C$23.00 price target.