Analyst Coverage Change
J.P. Morgan Chase & Co.(Rank#4) has lowered its target price for Air Canada’s stock from CAD 40 to CAD 35. Despite the target downgrade, the firm still maintains a Buy rating on the stock, indicating that it sees some upside potential in the airline’s future. The move comes as the firm takes a more cautious approach amid concerns over economic conditions and its impact on the airline industry.
Meanwhile, STA Research (Rank#121) has maintained its hold rating on Air Canada’s stock. A “Hold” rating typically indicates that an analyst believes a stock will perform roughly in line with the market average or lower.
Air Canada has reduced its capacity and cut costs, while also working to increase its liquidity position through various financing measures.
The airline industry still faces significant challenges in the near term, and the future prospects of Air Canada and its peers remain uncertain. As a result, analysts are likely to closely monitor the company’s performance and outlook in the coming months.
AC Stock Forecast & Analysis
According to 18 analysts who cover the stock, the average analyst target price for Air Canada is CAD 25.50 over the next 12 months, which represents a potential upside of over 35% from the current stock price. Furthermore, the average analyst rating for Air Canada is a “Strong Buy”, which indicates a high degree of confidence in the company’s future prospects.
Stock Target Advisor’s own stock analysis of Air Canada is “Neutral”, based on a mix of positive and negative signals. The company has had a challenging year, with its stock price down by over 22% over the last year. The COVID-19 pandemic has had a significant impact on Air Canada’s operations, as travel restrictions have resulted in a sharp decline in air travel demand, and now inflation and economic pressures are important demands that the company has to deal with,
The company has been focusing on cost-cutting measures, such as reducing capacity and cutting jobs, in order to conserve cash. Air Canada has also been working on expanding its cargo business, which has helped to offset some of the decline in passenger revenue.
