CIBC Forecasts Strong Price Appreciation for Air Canada (TSE:AC) Stock

Key Points

• CIBC raised its price objective on Air Canada from C$23.00 to C$24.00, implying about a 23.7% upside from the then-current share price.
• Analysts' consensus is a Moderate Buy with a mean price target of C$24.42 and a breakdown of eight Buys, four Holds and one Sell.
• Air Canada was trading near C$19.40 (up ~3.5%) with a market cap of C$5.75 billion, a negative P/E (-28.12) and a high debt-to-equity ratio (400%), indicating upside potential but elevated leverage risk.

Air Canada (TSE:AC - Get Free Report) had its price objective raised by research analysts at CIBC from C$23.00 to C$24.00 in a research note issued to investors on Wednesday,BayStreet.CA reports. CIBC's price objective would indicate a potential upside of 23.71% from the company's current price.

Several other equities analysts also recently commented on AC. Stifel Nicolaus cut their price objective on Air Canada from C$25.00 to C$24.00 and set a "buy" rating on the stock in a research report on Friday, September 26th. BMO Capital Markets cut their price target on shares of Air Canada from C$28.00 to C$27.00 in a report on Thursday, October 9th. Royal Bank Of Canada set a C$25.00 price target on shares of Air Canada and gave the stock an "outperform" rating in a research note on Tuesday, November 25th. Canaccord Genuity Group lowered their price objective on shares of Air Canada from C$28.00 to C$25.00 and set a "buy" rating for the company in a research report on Thursday, September 25th. Finally, TD Securities dropped their target price on shares of Air Canada from C$25.00 to C$22.00 in a research note on Friday, September 26th. Eight analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of C$24.42.

Air Canada Trading Up 3.5%

Air Canada stock traded up C$0.65 during midday trading on Wednesday, reaching C$19.40. The stock had a trading volume of 2,251,156 shares, compared to its average volume of 2,292,581. The company has a quick ratio of 1.06, a current ratio of 0.92 and a debt-to-equity ratio of 400.00. The firm has a market cap of C$5.75 billion, a price-to-earnings ratio of -28.12, a price-to-earnings-growth ratio of 0.02 and a beta of 1.75. Air Canada has a 52-week low of C$12.69 and a 52-week high of C$23.72. The company has a fifty day moving average of C$19.05 and a 200 day moving average of C$19.23.

Air Canada (TSE:AC - Get Free Report) last announced its earnings results on Tuesday, November 4th. The company reported C$0.75 earnings per share (EPS) for the quarter. Air Canada had a return on equity of 177.01% and a net margin of 11.57%.The business had revenue of C$5.77 billion during the quarter. On average, analysts anticipate 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, 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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