Air Canada (TSE:AC) Given New C$28.00 Price Target at Royal Bank Of Canada

Key Points

• Royal Bank of Canada cut Air Canada’s price target from C$37.00 to C$28.00 while maintaining an “outperform” rating, implying 33.65% upside from the prior close.
• Analyst sentiment remains broadly positive: eight analysts rate the stock Buy, two rate it Hold and one rates it Sell, producing a consensus “Moderate Buy” rating and average target of C$30.31.
• Air Canada shares traded at C$20.95, while the company recently reported C$0.75 in quarterly earnings per share on C$6.98 billion in revenue.

Air Canada (TSE:AC - Get Free Report) had its target price cut by investment analysts at Royal Bank Of Canada from C$37.00 to C$28.00 in a research note issued to investors on Monday, BayStreet reports. The firm presently has an "outperform" rating on the stock. Royal Bank Of Canada's price target suggests a potential upside of 33.65% from the stock's previous close.

Other equities research analysts have also recently issued research reports about the stock. Scotiabank dropped their target price on shares of Air Canada from C$37.50 to C$33.00 and set a "sector outperform" rating on the stock in a report on Thursday, October 15th. UBS Group increased their price objective on shares of Air Canada from C$24.00 to C$33.00 in a research report on Thursday, August 13th. Canadian Imperial Bank of Commerce upped their target price on Air Canada from C$26.00 to C$40.00 in a research note on Friday, August 14th. Stifel Nicolaus decreased their price objective on Air Canada from C$38.00 to C$32.00 and set a "buy" rating for the company in a report on Thursday. Finally, BMO Capital Markets reduced their price target on Air Canada from C$35.00 to C$33.00 and set an "outperform" rating for the company in a research report on Friday. Eight equities research analysts have rated the stock with a Buy rating, two have given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the company presently has an average rating of "Moderate Buy" and an average target price of C$30.31.

Air Canada Price Performance

TSE:AC traded up C$0.76 during mid-day trading on Monday, reaching C$20.95. The stock had a trading volume of 2,471,126 shares, compared to its average volume of 2,922,937. Air Canada has a one year low of C$16.45 and a one year high of C$31.45. The stock has a market capitalization of C$5.30 billion, a P/E ratio of 21.16, a P/E/G ratio of 0.02 and a beta of 1.86. The firm has a 50 day moving average price of C$25.70 and a two-hundred day moving average price of C$22.35. The company has a debt-to-equity ratio of 517.55, a quick ratio of 1.05 and a current ratio of 0.64.

Air Canada (TSE:AC - Get Free Report) last released its quarterly earnings data on Thursday, October 29th. The company reported C$0.75 earnings per share for the quarter. Air Canada had a return on equity of 12.10% and a net margin of 1.23%. The firm had revenue of C$6.98 billion during the quarter. As a group, analysts expect that Air Canada will post 2.58 earnings per share for the current 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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