JPMorgan Chase & Co. Lowers Air Canada (TSE:AC) Price Target to C$23.00

Key Points

• JPMorgan cut its price target on Air Canada to C$23.00 (from C$27.00), a level that implies roughly a 24% upside from the current share price.
• Several other brokers have also trimmed targets, leaving a consensus price target of C$23.39 and an average analyst rating of "Moderate Buy" (five Buy, five Hold).
• Shares traded around C$18.48 mid-day; the company has a market cap of C$5.44 billion, a P/E of 7.64 and very high leverage (debt-to-equity ~452.24), highlighting balance-sheet risk despite potential upside.

Air Canada (TSE:AC - Get Free Report) had its price objective decreased by equities research analysts at JPMorgan Chase & Co. from C$27.00 to C$23.00 in a note issued to investors on Monday,BayStreet.CA reports. JPMorgan Chase & Co.'s price objective would suggest a potential upside of 24.46% from the company's current price.

A number of other analysts have also issued reports on the stock. Canadian Imperial Bank of Commerce reduced their price target on shares of Air Canada from C$25.00 to C$22.00 in a research report on Wednesday, April 8th. National Bank Financial reduced their target price on shares of Air Canada from C$25.00 to C$22.00 in a research note on Thursday, April 2nd. Canaccord Genuity Group reduced their target price on shares of Air Canada from C$21.00 to C$20.00 and set a "hold" rating for the company in a research note on Monday. Raymond James Financial cut shares of Air Canada from a "moderate buy" rating to a "hold" rating in a research note on Tuesday, February 17th. Finally, Stifel Nicolaus reduced their target price on shares of Air Canada from C$28.00 to C$25.50 and set a "buy" rating for the company in a research note on Tuesday, April 28th. Five equities research analysts have rated the stock with a Buy rating and five have given a Hold rating to the company. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus price target of C$23.39.

Air Canada Stock Up 1.2%

Shares of TSE AC traded up C$0.22 during mid-day trading on Monday, reaching C$18.48. The company had a trading volume of 2,355,762 shares, compared to its average volume of 3,098,683. The stock has a fifty day moving average of C$18.51 and a two-hundred day moving average of C$18.91. The company has a debt-to-equity ratio of 452.24, a quick ratio of 1.06 and a current ratio of 0.60. The company has a market capitalization of C$5.44 billion, a price-to-earnings ratio of 7.64, a PEG ratio of 0.02 and a beta of 1.63. Air Canada has a 12-month low of C$14.55 and a 12-month high of C$23.72.

About Air Canada

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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