Royal Bank Of Canada Forecasts Strong Price Appreciation for Air Canada (TSE:AC) Stock

Key Points

• Royal Bank of Canada raised Air Canada’s price target to C$37 from C$28 and maintained an “outperform” rating, implying 21.35% upside from the prior close.
• Analyst sentiment is broadly positive: seven analysts rate the stock a Buy and three rate it a Hold, producing a “Moderate Buy” consensus and an average target of C$29.88. Scotiabank and BMO Capital Markets also recently raised their targets.
• Air Canada shares traded at C$30.49, near their 12-month high of C$31.45, while the company reported quarterly EPS of C$0.40 and revenue of C$6.27 billion.

Air Canada (TSE:AC - Get Free Report) had its target price increased by stock analysts at Royal Bank Of Canada from C$28.00 to C$37.00 in a note issued to investors on Thursday,BayStreet.CA reports. The brokerage presently has an "outperform" rating on the stock. Royal Bank Of Canada's price objective would suggest a potential upside of 21.35% from the stock's previous close.

A number of other research analysts have also issued reports on AC. Scotiabank upgraded shares of Air Canada from a "hold" rating to a "sector outperform" rating and raised their price objective for the company from C$26.00 to C$33.50 in a report on Tuesday. JPMorgan Chase & Co. reduced their target price on shares of Air Canada from C$27.00 to C$23.00 in a report on Monday, May 4th. Stifel Nicolaus upped their price target on shares of 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. BMO Capital Markets upped their price target on shares of Air Canada from C$30.00 to C$37.00 and gave the company an "outperform" rating in a research report on Wednesday. Finally, ATB Cormark Capital Markets dropped their price target on shares of Air Canada from C$33.00 to C$32.00 and set an "outperform" rating for the company in a research note on Wednesday, April 29th. Seven equities research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. According to data from MarketBeat, the company currently has an average rating of "Moderate Buy" and an average target price of C$29.88.

Air Canada Price Performance

TSE:AC traded down C$0.12 during mid-day trading on Thursday, reaching C$30.49. The stock had a trading volume of 2,359,806 shares, compared to its average volume of 2,963,073. Air Canada has a 12 month low of C$16.45 and a 12 month high of C$31.45. The stock has a market capitalization of C$8.75 billion, a PE ratio of 12.60, a P/E/G ratio of 0.02 and a beta of 2.02. 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 stock has a 50-day simple moving average of C$24.12 and a two-hundred day simple moving average of C$20.97.

Air Canada (TSE:AC - Get Free Report) last issued its earnings results on Tuesday, August 11th. The company reported C$0.40 EPS for the quarter. The firm had revenue of C$6.27 billion during the quarter. Air Canada had a return on equity of 34.23% and a net margin of 3.46%. On average, equities analysts anticipate that Air Canada will post 2.5789474 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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