Analyst Rating Change
On February 17, 2023, CIBC World Markets and STA Research both released updates on their analyst coverage of Air Canada, one of Canada’s largest airlines.
CIBC World Markets reiterated their “Outperform” rating for Air Canada. This means that CIBC believes the company will perform better than the overall market, and they recommend that investors buy shares in the airline. The rating is based on CIBC’s analysis of the company’s financial performance, management, and other factors. CIBC World Markets also maintained their price target of CAD 32 for Air Canada.
STA Research also released an update, maintaining their “Hold” rating for Air Canada. A “Hold” rating means that STA Research believes the stock is fairly valued and does not expect significant price movement in the near term. The rating is based on STA Research’s analysis of the company’s financial performance, industry trends, and other factors.
AC Stock Price Forecast & Analysis
According to the forecasts of 15 analysts, the average target price for Air Canada over the next 12 months is CAD 25.22. The average analyst rating for the company is Strong Buy. However, Stock Target Advisor’s own analysis of Air Canada is Bearish, with 2 positive signals and 8 negative signals. As of the last closing, the stock price of Air Canada was CAD 23.15. The stock price has increased by +2.39% over the past week and by +5.56% over the past month, but has decreased by -7.81% over the last year.
Air Canada Earnings
Air Canada reported a loss of $1.7 billion for 2022, a marked improvement from the previous year, when the airline lost $3.6 billion. The revenue from seat sales in 2022 tripled from the previous year to $14.2 billion, which is around 83% of 2019’s levels. Air Canada’s profit in the fourth quarter of 2022 was $168 million, compared to a loss of $493 million in the previous year’s fourth quarter. The company’s CEO attributed the improved financial performance to solid demand and cost controls, which validated the strategy of diversifying revenue sources. However, Air Canada’s share price fell 9% to just over $21 on the Toronto Stock Exchange.