Analyst Fadi Chamoun from BMO Capital reiterated a Buy rating on Air Canada (ACDVF – Research Report) and keeping the price target at C$29.00.
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Fadi Chamoun has given his Buy rating due to a combination of factors influencing Air Canada’s performance. The company’s strong execution in managing costs and reallocating capacity has helped it navigate external challenges, such as macroeconomic uncertainties and competitive pressures in the Asia market. Despite these headwinds, Air Canada has demonstrated resilience by maintaining a stable demand environment, which is supported by its strategic capacity adjustments towards domestic and international routes.
Moreover, Air Canada’s management has shown a commitment to cost savings, targeting $150 million in savings for fiscal year 2025, which is expected to mitigate inflationary pressures. The company’s proactive approach in expanding into longer-haul and underserved destinations, along with a stable booking trend, further supports the positive outlook. Chamoun believes that Air Canada’s strong market position and focus on network optimization will enable it to grow and control unit cost inflation, justifying the Buy rating.
In another report released today, RBC Capital also upgraded the stock to a Buy with a C$25.00 price target.