Air Canada (ACDVF – Research Report), the Industrials sector company, was revisited by a Wall Street analyst today. Analyst Thomas Fitzgerald CFA from TD Cowen maintained a Buy rating on the stock and has a C$16.00 price target.
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Thomas Fitzgerald CFA has given his Buy rating due to a combination of factors, including adjustments in Air Canada’s financial estimates and favorable market conditions. The analyst has slightly lowered the first quarter estimates but increased projections for the subsequent quarters, citing lower fuel costs and a more favorable foreign exchange environment. Despite the short interest being at its highest in over a decade, Fitzgerald remains optimistic about the company’s performance.
Air Canada has faced challenges similar to its US counterparts, with a decline in transborder bookings due to geopolitical tensions. However, the airline is expected to shift its focus towards Latin destinations, which could mitigate some of these issues. Additionally, strong international demand during the peak season and encouraging passenger traffic growth in Canada contribute to the positive outlook. The easing of fuel costs and exchange rates further supports the Buy rating, even as non-fuel cost pressures persist.
In another report released yesterday, Stifel Nicolaus also maintained a Buy rating on the stock with a C$22.00 price target.
Based on the recent corporate insider activity of 44 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.