The earnings call will tell us all (hopefully)https://www.stockwatch.com/News/Item.aspx?bid=Z-C%3aAC-2143666&symbol=AC®ion=C
The Financial Post reports in its Tuesday edition 2014 might prove to be a challenging year for Air Canada and WestJet Airlines with several headwinds picking up. The Post's Scott Deveau, writing in Trading Desk, says, however, analysts are divided on whether it is time to sell and move on. Shares in Air Canada and WestJet have experienced a great deal of volatility in early 2014 as the weak loonie and broader economic uncertainty spooked investors. Ben Cherniavsky, Raymond James analyst, encouraged investors to take a profit ahead of fourth-quarter results in the coming weeks. Mr. Cherniavsky said he had concerns about the amount of capacity being deployed by both carriers this year and the impact that would have on profitability at a time when the weak loonie is posing challenges for both airlines, which have considerable costs in U.S. currency, including fuel. David Newman, Cormark Securities analyst, said he believed the carriers were poised to deliver strong fourth-quarter results aided by healthy demand and declining jet fuel prices. Mr. Newman has Air Canada listed as his top pick in the sector with a $13 price target. He also upgraded WestJet to a buy rating Monday with a $30 price target.