A portfolio manager opinion (+++)
Globe says Air Canada seen doubling as tourism returns
2021-02-04 08:26 ET - In the News
The Globe and Mail reports in its Thursday edition that Jamie Murray, portfolio manager and head of research at Murray Wealth Group, expects Air Canada ($21.81) to do well amid the expected recovery from the COVID-19 pandemic. In a Globe special, Brenda Bouw writes that Mr. Murray sold Air Canada in early 2019 and started buying the stock again last November, as positive vaccine news started to come out, believing it will benefit from people starting to book travel again. "I think there's tons of pent-up demand for travel and Air Canada is in a relatively strong financial positive versus global airlines peers," he says. Mr. Murray points to industry estimates showing the travel market will begin to fully recover in the next year or two. "We think, long term, Air Canada probably doubles or triples from its current price," he says. There is a risk that the recovery may be delayed, he notes, which would in turn likely delay a rise in the stock price. Murray Wealth says its flagship Global Equity Growth Fund returned 21.5 per cent in 2020, which beat the 12-per-cent return of its benchmark. The company says that the fund's five-year return was 13.3 per cent compared with 10.5 per cent for its benchmark.