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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

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Post by Tempo1on Apr 28, 2024 10:08am
167 Views
Post# 36011512

Confortable SP position

Confortable SP positionYep !  Three days before the results, I'm comfortable with a 20$ SP.

In a risk/Reward perspective, this 20$ is the price for the negative scenario ( with a worst case scenario at 18$) ; a decline in yields, a booking affected by bad economics, a high fuel price and....a downward revision of the 3,9 B$ EBITDA forecasts). All that already almost computed in the SP of 18$-20$.

Any results above this situation, like stability  ( stability on bookings, EBITDA on track with forecasts etc) will drive a better SP. Look at the US airlines, Air Canada lags behind them.

So, the risk is minimal; I wouldn't go so far as to say ''a dream situation'' but at least, an advantageous risk/return position.

Let's see.

 
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