Air Canada (TSE:AC) Receives Average Rating of "Moderate Buy" from Brokerages

Key Points

• Consensus: "Moderate Buy" — Ten brokerages cover Air Canada with an even split of five buys and five holds, and the average 1-year price objective is C$24.33.
• Analyst actions are mixed: Jefferies and CIBC modestly raised targets while BMO trimmed its target and Canaccord and Scotiabank downgraded the stock to hold and cut targets to around C$21, reflecting divergent views on near-term prospects.
• Valuation and risk profile: the stock opened at C$17.96 (market cap C$5.29B, PE 9.66, 52-week range C$12.69–C$23.72), but carries high leverage and liquidity concerns with a debt-to-equity of 446.78 and a current ratio of 0.56.

Shares of Air Canada (TSE:AC - Get Free Report) have earned an average rating of "Moderate Buy" from the ten research firms that are currently covering the company, Marketbeat Ratings reports. Five research analysts have rated the stock with a hold rating and five have assigned a buy rating to the company. The average 1-year price objective among brokers that have issued a report on the stock in the last year is C$24.33.

Several research firms have commented on AC. Jefferies Financial Group upped their price objective on shares of Air Canada from C$17.00 to C$19.00 in a report on Tuesday, March 31st. Canadian Imperial Bank of Commerce upped their price objective on shares of Air Canada from C$23.00 to C$24.00 in a report on Wednesday, January 21st. BMO Capital Markets lowered their price target on shares of Air Canada from C$27.00 to C$26.00 in a report on Tuesday, March 31st. Canaccord Genuity Group downgraded shares of Air Canada from a "buy" rating to a "hold" rating and lowered their price target for the stock from C$28.00 to C$21.00 in a report on Friday, March 13th. Finally, Scotiabank downgraded shares of Air Canada from an "outperform" rating to a "hold" rating and lowered their price target for the stock from C$27.00 to C$21.00 in a report on Tuesday, March 10th.

Air Canada Price Performance

TSE AC opened at C$17.96 on Wednesday. The company has a market cap of C$5.29 billion, a PE ratio of 9.66, a price-to-earnings-growth ratio of 0.02 and a beta of 1.56. Air Canada has a 52 week low of C$12.69 and a 52 week high of C$23.72. The company has a quick ratio of 1.06, a current ratio of 0.56 and a debt-to-equity ratio of 446.78. The firm's 50-day simple moving average is C$19.02 and its two-hundred day simple moving average is C$18.85.

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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