RBC Says Air Canada Outperformed Airlines Sector In Q2 2023-07-19 10:46:47 AM ET (MT Newswires)
10:46 AM EDT, 07/19/2023 (MT Newswires) -- RBC Capital Markets said Wednesday that the airlines/aerospace sector underperformed the market in the second quarter except for Air Canada (AC.TO), which significantly outperformed on robust summer travel demand and normalizing fuel prices.
RBC increased Air Canada's price target to $25 from $23 while reaffirming its sector perform rating. Its EBITDA estimate for the second quarter was also raised to $903 million from $820 million on lower fuel prices.
RBC said its 2024 estimates for Air Canada remain below consensus and guidance amid multiple headwinds facing the airline industry after the summer travel season.
Meanwhile, RBC said Bombardier Inc. (BBD-B.TO)'s price target remained unchanged at $103 with an outperform rating. RBC said key focus for the company include demand, book-to-bill and potential for a services guidance raise.
CAE Inc. (CAE.TO)'s price target was also maintained at $35 with an outperform rating, with its defense segment the key focus for the company in the quarter.
RBC reaffirmed Chorus Aviation Inc. (CHR.TO)'s $4 price target and outperform rating as investors await the company's update on Fund III, visibility toward new growth avenues in RAS and the pilot shortage.
RBC increased Exchange Income Corp. (EIF.TO)'s price target to $71 from $70 and maintained its outperform rating.