Air Canada, 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$25.00 price target.
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Thomas Fitzgerald CFA has given his Buy rating due to a combination of factors that indicate a positive outlook for Air Canada. The company’s shares are currently trading below their historical EV/EBITDA averages, suggesting potential for upward movement as investor confidence grows. Additionally, Air Canada’s diverse revenue streams and strategic geographic positioning allow it to effectively manage shifts in demand, particularly with a focus on Latin American destinations.
Management’s proactive approach, such as hedging a portion of fuel consumption, further strengthens the company’s financial position. The overall demand environment appears robust, with an increase in passenger traffic at major Canadian airports. These elements, combined with favorable foreign exchange movements and positive management commentary, contribute to the optimistic forecast for the remainder of the year.
In another report released on July 16, National Bank also maintained a Buy rating on the stock with a C$26.00 price target.