Trending >

AC stock earns price target raise at RBC

AC stock

Lower prices for fuel have RBC Dominion Securities analyst Walter Spracklin raising his price target on Air Canada (Air Canada Stock Quote, Chart, News, Analysts, Financials TSX:AC).

As reported by the Globe and Mail, Spracklin January 29 maintained his “Sector Perform” rating on AC but raised his 12-month price target on the stock from $17.00 to $18.00.

The analyst explained why he is increasing his estimates for the company’s forthcoming Q4.

“We are increasing our Q4/23 estimate to $524-million (from $439-million) vs consensus of $539-million, strictly on the benefit from lower fuel prices,” he wrote. “For 2024, we previously anticipated a return to 2019 capacity levels by 2024. However, given the robust capacity ramp-up over the last two years, OEM delays, and MRO slowdowns, we reduce our capacity assumption for AC to a decline of 3 per cent vs. 2019 (or up 10 per cent year-over-year). Our 2024 estimate of $3.209-billion remains below consensus of $3.765-billion and guidance of $3.5-billion to $4-billion as we see multiple headwinds facing the airline industry, including the sustainability of higher fares, increased new entrants, and higher labour costs.”

Shares of Air Canada fell sharply in the second half of 2023 to rebound slightly with the market rally that began last autumn. AC stock on the TSX closed January 26 at $18.92.

We Hate Paywalls Too!

At Cantech Letter we prize independent journalism like you do. And we don't care for paywalls and popups and all that noise That's why we need your support. If you value getting your daily information from the experts, won't you help us? No donation is too small.

Make a one-time or recurring donation

About The Author /

insta twitter facebook