Air Canada (TSE:AC) Sets New 1-Year High - Should You Buy?

Key Points

• Air Canada shares hit a new 52-week high, trading as high as C$25.56 and closing near C$25.54, up 5.8% from the previous close.
• Analyst sentiment is generally positive: six analysts rate the stock a Buy and four rate it a Hold, producing a “Moderate Buy” consensus and an average price target of C$25.25.
• The company reported C$5.79 billion in quarterly revenue and a loss of C$0.05 per share, while its high debt-to-equity ratio of 452.24 highlights a significant financial risk despite improving profitability metrics.

Air Canada (TSE:AC - Get Free Report) reached a new 52-week high on Tuesday . The company traded as high as C$25.56 and last traded at C$25.54, with a volume of 2756513 shares changing hands. The stock had previously closed at C$24.25.

Wall Street Analysts Forecast Growth

AC has been the topic of several recent research reports. ATB Cormark Capital Markets reduced their price target on Air Canada from C$33.00 to C$32.00 and set an "outperform" rating on the stock in a research report on Wednesday, April 29th. BMO Capital Markets boosted their price objective on Air Canada from C$26.00 to C$30.00 and gave the company an "outperform" rating in a research report on Wednesday, July 8th. Stifel Nicolaus increased their price objective on Air Canada from C$25.50 to C$30.00 and gave the company a "buy" rating in a research note on Wednesday, July 22nd. JPMorgan Chase & Co. cut their target price on shares of Air Canada from C$27.00 to C$23.00 in a report on Monday, May 4th. Finally, National Bank Financial raised shares of Air Canada from a "hold" rating to an "outperform" rating and lifted their target price for the stock from C$22.00 to C$29.00 in a research note on Tuesday, July 7th. Six investment analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company. According to MarketBeat.com, Air Canada has an average rating of "Moderate Buy" and a consensus target price of C$25.25.

Air Canada Trading Up 5.8%

The company has a debt-to-equity ratio of 452.24, a current ratio of 0.60 and a quick ratio of 1.05. The firm's 50 day moving average price is C$22.80 and its 200 day moving average price is C$20.37. The stock has a market capitalization of C$7.60 billion, a P/E ratio of 10.60, a P/E/G ratio of 0.02 and a beta of 2.00.

Air Canada (TSE:AC - Get Free Report) last posted its earnings results on Thursday, April 30th. The company reported C($0.05) earnings per share (EPS) for the quarter. Air Canada had a return on equity of 34.23% and a net margin of 3.46%.The business had revenue of C$5.79 billion during the quarter. As a group, equities research analysts expect that Air Canada will post 2.5789474 earnings per share for the current fiscal year.

Air Canada Company Profile

Air Canada is Canada's largest airline, the country's flag carrier and a founding member of Star Alliance, the world's most comprehensive air transportation network. Headquartered in Montréal, Air Canada provides scheduled service directly to more than 180 airports in Canada, the United States and Internationally on six continents. It holds a Four-Star ranking from Skytrax. Air Canada's Aeroplan program is Canada's premier travel loyalty program, with more than 10 million members worldwide. Members can earn or redeem points on the world's largest airline partner network of more than 50 airlines, plus through an extensive range of merchandise, hotel and car rental partners.

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