{"id":61222,"date":"2025-02-11T12:56:36","date_gmt":"2025-02-11T12:56:36","guid":{"rendered":"https:\/?p=61222"},"modified":"2025-02-11T12:56:36","modified_gmt":"2025-02-11T12:56:36","slug":"air-canada-stock-forecast-2","status":"publish","type":"post","link":"https:\/\/www.stocktargetadvisor.com\/blog\/air-canada-stock-forecast-2\/","title":{"rendered":"Air Canada (AC:CA) Stock Forecast: What to Expect from Q4 Earnings"},"content":{"rendered":"

Air Canada (AC:CA)<\/a> is gearing up to release its fourth-quarter results on February 14, 2025, amid considerable anticipation from the market.<\/p>\n

This announcement follows the company\u2019s strong strategic initiatives, including a share buyback program and continued expansion in international markets. Investors are keen to understand how seasonal trends and cost pressures might influence the carrier’s Q4 performance.<\/p>\n

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Expected Q4 Earnings Report of Air Canada:<\/h2>\n

Air Canada is expected to post an EPS of CAD 0.27 for Q4 2024, reflecting gradual recovery and demand growth in international travel. This comes on the heels of strong Q3 results, where the airline<\/a> outperformed analysts’ EPS forecasts significantly.<\/p>\n

Air Canada’s guidance for full-year earnings remains robust, with core profitability expected to reach CAD 3.5 billion, supported by healthy demand and improved operational efficiency.<\/p>\n

Analysts will focus on key metrics such as revenue growth and capacity expansion, especially as Air Canada targets mid-single-digit growth in 2025.<\/p>\n

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Stock Target Advisor’s Analysis on Air Canada:<\/h2>\n

Stock Target Advisor’s<\/a> assessment of Air Canada is “Slightly Bullish,” reflecting 10 positive and 6 negative signals. Key strengths include high earnings growth (1,262.87% over five years), superior return on equity (139.92%), and undervaluation metrics, such as a price-to-cash-flow ratio of 1.7.<\/p>\n

However, the airline’s high leverage (debt-to-equity ratio of 1,377.64%) and poor risk-adjusted returns remain concerns. The stock’s current price of CAD 17.74 is significantly below its average 12-month target price of CAD 25.01, suggesting a potential upside of approximately 41.8% based on Stock Target Advisor\u2019s projections.<\/p>\n

Recent Analyst Ratings and Targets<\/h2>\n

Recent ratings and corresponding price targets for Air Canada reflect a mixed sentiment:<\/p>\n