Air Canada (TSE:AC) Price Target Cut to C$25.50 by Analysts at Stifel Nicolaus

Key Points

• Stifel Nicolaus cut its price target on Air Canada from C$28.00 to C$25.50 while keeping a "buy" rating, a target that implies about a 39.9% upside from the prior close.
• Multiple other analysts have trimmed targets or downgraded the stock, leaving a consensus rating of “Moderate Buy” with an average price target of C$23.50 (five Buy and five Hold ratings).
• Shares traded at C$18.23 (down ~1.6%) with a market cap of C$5.37B, a low P/E of 9.8 and a very high debt-to-equity ratio of 446.78, highlighting both attractive valuation metrics and significant leverage.

Air Canada (TSE:AC - Get Free Report) had its price target reduced by research analysts at Stifel Nicolaus from C$28.00 to C$25.50 in a research note issued to investors on Tuesday,BayStreet.CA reports. The brokerage currently has a "buy" rating on the stock. Stifel Nicolaus' price objective suggests a potential upside of 39.88% from the company's previous close.

A number of other equities research analysts have also recently issued reports on AC. TD dropped their price objective on Air Canada from C$23.00 to C$21.00 in a research note on Monday, April 20th. Scotiabank downgraded shares of Air Canada from an "outperform" rating to a "hold" rating and decreased their price objective for the company from C$27.00 to C$21.00 in a research report on Tuesday, March 10th. Canaccord Genuity Group downgraded shares of Air Canada from a "buy" rating to a "hold" rating and decreased their price objective for the company from C$28.00 to C$21.00 in a research report on Friday, March 13th. Jefferies Financial Group lifted their price objective on shares of Air Canada from C$17.00 to C$19.00 in a research report on Tuesday, March 31st. Finally, Canadian Imperial Bank of Commerce dropped their price objective on Air Canada from C$25.00 to C$22.00 in a research note on Wednesday, April 8th. Five investment analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the stock. According to data from MarketBeat, Air Canada presently has a consensus rating of "Moderate Buy" and an average price target of C$23.50.

Air Canada Stock Down 1.6%

Shares of TSE AC traded down C$0.29 during mid-day trading on Tuesday, hitting C$18.23. The company had a trading volume of 1,886,774 shares, compared to its average volume of 3,053,614. Air Canada has a one year low of C$13.73 and a one year high of C$23.72. The company has a market capitalization of C$5.37 billion, a PE ratio of 9.80, a price-to-earnings-growth ratio of 0.02 and a beta of 1.56. The company has a current ratio of 0.56, a quick ratio of 1.06 and a debt-to-equity ratio of 446.78. The firm has a 50-day simple moving average of C$18.67 and a two-hundred day simple moving average of C$18.90.

Air Canada Company Profile

Air Canada is Canada's largest airline, generally serving nearly 50 million passengers each year together with its regional partners. Air Canada is a sixth freedom airline, similar to Gulf carriers, which flies many U.S. nationals on long-haul trips with a layover in Canada. In 2019, the company generated CAD 19 billion in total revenue.

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