Jefferies downgrades Air Canada to Underperform on trade tensions

Jefferies downgraded Air Canada (ACDVF) to Underperform from Hold with a price target of C$12, down from C$18. The company set “ambitious” growth targets of 8% annual revenue growth to 2028, the analyst tells investors in a research note. The firm says a key component of the targets is Air Canada’s share of the U.S. “6th Freedom” travel and growth from U.S. trans-border flows. However, both are under risk given the U.S.-Canada trade tensions, contends Jefferies.

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