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The Globe and Mail reports in its Wednesday, March 19, edition that Desjardins Securities analyst Benoit Poirier has reduced his Street-high share target for Transat AT by 25 cents to $2. The Globe's David Leeder writes in the Eye On Equities column that analysts on average target the shares at $1.54. After a first quarter beat driven by favourable fuel prices, Mr. Poirier sees Transat AT maintaining its trajectory "despite tariff hostility." Mr. Poirier says in a note: "While Transat has not been directly impacted by increased Canada-U.S. hostility given its limited exposure to the U.S. end market, we remain conservative with our estimates given some of the potential indirect effects of the volatility -- a depreciating loonie and weaker consumer confidence, which could impact future travel demand. Analyzing the weak Q1 results of some U.S. airlines, it appears that the macro uncertainty has already begun to impact the industry. ... We prefer to remain on the sidelines as we await additional deleveraging as well as execution of the strategic plan." On March 13 Transat posted quarterly revenue of $830-million, up 5.6 per cent year-over-year, above both Mr. Poirier's $801-million estimate and the consensus of $814-million.
The Globe and Mail reports in its Tuesday, March 18, edition that TD Cowen analyst Tim James continues to rate Transat AT "hold." The Globe's David Leeder writes in the Eye On Equities column that Mr. James gave his share target a 25-cent trim to $1.75. Analysts on average target the shares at $1.59. Mr. James says in a note: "Booking trends suggest stronger-than-previously expected F2025 yield environment, though the risks related to tariffs/economy are increasing. We continue to believe the share-price upside will be limited due to high financial leverage, narrow margins, P&W engine issues and uncertainty resulting from tariff-related and FX headwinds." The Globe reported on Dec. 13 and Feb. 12 that Mr. James continued to rate Transat AT "hold." The shares could then be had for $1.95 and $1.75.