Analyst Fadi Chamoun from BMO Capital reiterated a Buy rating on Air Canada (ACDVF – Research Report) and decreased the price target to C$29.00 from C$31.00.
Fadi Chamoun has given his Buy rating due to a combination of factors that suggest Air Canada is positioned to perform well despite current market challenges. The sentiment around Air Canada has become overly negative, particularly given the company’s strong fundamentals both in the short and long term. Although macroeconomic risks have risen, the company’s strategic plan, which was outlined in December 2024, is expected to deliver substantial value.
Chamoun acknowledges the near-term pressures, such as unique headwinds in Q1/25 and elevated macro uncertainty due to trade tensions with the U.S. However, he believes that Air Canada’s strong market position and strategic shift from network restoration to optimization will enable it to grow and manage costs effectively. The company’s ability to leverage supportive market conditions, such as favorable fuel prices and demand shifts, supports the potential for achieving its EBITDA guidance for 2025, making the stock an attractive buy at current valuation levels.
According to TipRanks, Chamoun is a 5-star analyst with an average return of 12.5% and a 60.52% success rate. Chamoun covers the Industrials sector, focusing on stocks such as CAE, Bombardier, and CH Robinson.