Canadian Imperial Bank of Commerce Increases Air Canada (TSE:AC) Price Target to C$40.00

Key Points

• CIBC raised its Air Canada price target to C$40 from C$26, implying 34.5% upside from the stock’s previous close. The broader analyst consensus is “Moderate Buy,” with an average target of C$31.27.
• Air Canada shares fell 2.2% to C$29.74 in Friday trading, despite several analysts—including ATB Cormark, National Bank, RBC and UBS—recently raising their targets or ratings.
• The airline reported quarterly revenue of C$6.27 billion and EPS of C$0.40, but its high leverage remains a key risk, with debt-to-equity of about 452% and a current ratio below 1.

Air Canada (TSE:AC - Get Free Report) had its target price boosted by stock analysts at Canadian Imperial Bank of Commerce from C$26.00 to C$40.00 in a report released on Friday,BayStreet.CA reports. Canadian Imperial Bank of Commerce's price target indicates a potential upside of 34.50% from the stock's previous close.

A number of other equities analysts also recently issued reports on the company. JPMorgan Chase & Co. reduced their price target on Air Canada from C$27.00 to C$23.00 in a research report on Monday, May 4th. UBS Group raised their price objective on Air Canada from C$24.00 to C$33.00 in a research report on Thursday. TD dropped their target price on Air Canada from C$23.00 to C$21.00 in a research note on Monday, April 20th. Stifel Nicolaus upped their target price on Air Canada from C$25.50 to C$30.00 and gave the company a "buy" rating in a research report on Wednesday, July 22nd. Finally, Canaccord Genuity Group increased their price target on Air Canada from C$20.00 to C$26.00 and gave the company a "hold" rating in a research note on Monday, July 6th. Seven equities research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company's stock. According to MarketBeat, the company has an average rating of "Moderate Buy" and a consensus target price of C$31.27.

Air Canada Stock Down 2.2%

Shares of TSE:AC traded down C$0.67 during trading on Friday, reaching C$29.74. The stock had a trading volume of 1,961,455 shares, compared to its average volume of 2,964,899. The firm's 50-day simple moving average is C$24.30 and its 200 day simple moving average is C$21.04. The company has a current ratio of 0.60, a quick ratio of 1.05 and a debt-to-equity ratio of 452.24. Air Canada has a one year low of C$16.45 and a one year high of C$31.45. The company has a market capitalization of C$8.33 billion, a P/E ratio of 22.70, a PEG ratio of 0.02 and a beta of 2.02.

Air Canada (TSE:AC - Get Free Report) last posted its quarterly earnings data on Tuesday, August 11th. The company reported C$0.40 EPS for the quarter. Air Canada had a net margin of 3.46% and a return on equity of 34.23%. The firm had revenue of C$6.27 billion during the quarter. As a group, research analysts expect that Air Canada will post 2.5789474 EPS for the current fiscal year.

Key Air Canada News

Here are the key news stories impacting Air Canada this week:

• Positive Sentiment: Multiple analysts raised their targets: ATB Cormark increased its target to C$45 and assigned an “outperform” rating, National Bank raised its target to C$40 with an “outperform” rating, and RBC lifted its target to C$37 with the same rating. The revisions suggest improving confidence in Air Canada’s earnings outlook and potential for further appreciation. BayStreet analyst ratings
• Positive Sentiment: UBS also raised its Air Canada price target from C$24 to C$33, adding to the increasingly constructive analyst consensus. BayStreet analyst ratings
• Positive Sentiment: BMO Capital Markets is forecasting strong price appreciation for AC stock, reinforcing the bullish analyst view. BMO Capital Markets Air Canada forecast
• Positive Sentiment: Scotiabank upgraded its rating on Air Canada, another signal that sentiment among Canadian bank analysts is improving. Scotiabank Air Canada rating upgrade
• Neutral Sentiment: The latest earnings-call coverage follows Air Canada’s second-quarter report, which included C$6.27 billion in revenue and C$0.40 in earnings per share. Investors are likely assessing management’s outlook and operating trends for the remainder of 2026. Air Canada Q2 2026 earnings call transcript
• Negative Sentiment: Air Canada’s high financial leverage remains a risk: its debt-to-equity ratio is reported at roughly 452%, while its current ratio is below 1. These balance-sheet concerns could limit the stock’s response if travel demand, margins, or cash flow weaken.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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