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Air Canada T.AC

Alternate Symbol(s):  ACDVF

Air Canada is an airline company. The Company is a provider of scheduled passenger services in the Canadian market, the Canada-United States (U.S.) transborder market and the international market to and from Canada. It provides scheduled service directly to more than 180 airports in Canada, the United States and internationally on six continents. The Company’s Aeroplan program is Canada's premier travel loyalty program, where members can earn or redeem points on the airline partner network of 45 airlines, plus through a range of merchandise, hotel and car rental rewards. Its freight division, Air Canada Cargo, provides air freight lift and connectivity to hundreds of destinations across six continents using its passenger and freighter aircraft. Its Air Canada Vacations is a tour operator, which is engaged in developing, marketing, and distributing vacation travel packages in the outbound/inbound leisure travel market. Air Canada Rouge is Air Canada's leisure carrier.


TSX:AC - Post by User

Bullboard Posts
Post by islandbrookon Dec 27, 2016 9:00am
354 Views
Post# 25644445

Double in a Year not an Irrrational Price Target

Double in a Year not an Irrrational Price TargetConsider that American Airlines sells at a PE discount to the S&P of35%, Air Canada at a double ($28) would sell at a 59% discount to the S&P TSX 300 Looking at it from a different point of view, assume that AC by the 4th quarter of 2017 pays a dividend with a 25% pay-out ratio of 2017 earnings of $4.25 or $1,06 per share. At $28 ,it would yield 3.80%, not an unreasonable level. Considering that the stock is lower to-day than it was 18 months prior. a catch-up year should not be a surprise, Hence my target for year-end 2017 is a DOUBLE or $28.
Bullboard Posts