This is a Buying Opportunity 2024-05-03 07:32 ET - In the News
The Globe and Mail reports in its Friday, May 3, edition that ATB Capital analyst Chris Murray has reaffirmed his "outperform" recommendation for Air Canada. The Globe's David Leeder writes that Mr. Murray raised his share target by a loonie to $33. Analysts on average target the shares at $27.56. Investors punished Air Canada by sending its shares plummeting 8.4 per cent on Thursday after it swung to a loss in the first quarter. However, Mr. Murray saw the results as strong, emphasizing the airline's increased capacity and impressive load factors. Mr. Murray says in a note: "Management remained upbeat on the company's outlook as demand conditions remain supportive and are expected to receive a boost from Sixth Freedom traffic and normalizing business travel in 2024. Management reaffirmed full-year guidance and confirmed that it hedged 50 per cent of expected fuel consumption for Q2/24 at Q1/24 prices. The balance sheet continues to improve, as evidenced by a recent upgrade positioning Air Canada returns to shareholders over the medium term. Given the current demand environment and increased balance sheet flexibility, we remain constructive on Air Canada and see [Thursday's] weakness as a buying opportunity."