Air Canada Rated as Strong-Buy by Stifel Canada

Stifel Canada has upgraded Air Canada (OTCMKTS:ACDVF – Free Report) from a hold rating to a strong-buy rating in a research note shared on a Sunday morning, according to recent reports. Along with the upgrade, Stifel Canada also provided forecasts for Air Canada’s future performance, predicting earnings of $0.31 EPS for Q4 2024, $2.67 EPS for the fiscal year 2024, and $2.50 EPS for fiscal year 2025.

Air Canada Stock Performance

On Friday, shares of Air Canada (OTCMKTS ACDVF) opened at $16.62. The company maintains a current ratio of 0.85, a quick ratio of 0.81, and an extraordinarily high debt-to-equity ratio of 9.32. With a market capitalization of $5.96 billion, Air Canada displays a price-to-earnings ratio of 3.43 and a beta of 2.05. Furthermore, the company's 50-day moving average is $12.59, and its 200-day moving average is $12.66. Over the past year, Air Canada has traded between a low of $10.16 and a high of $16.65.

Air Canada last reported its quarterly earnings data on November 1st, revealing earnings of $1.88 EPS for the quarter, exceeding analysts’ expectations of $1.16 by a substantial margin of $0.72. The firm reported revenues amounting to $4.48 billion for the quarter, which aligned with analysts' forecasts. Air Canada achieved a remarkable return on equity of 133.91% and a net margin of 11.53%. Analysts predict that Air Canada will average an earnings per share of 1.65 for the ongoing fiscal year.

About Air Canada

Air Canada is known for providing domestic, U.S. transborder, and international airline services. The company operates scheduled passenger services through its brands, such as Air Canada Vacations and Air Canada Rouge, in the Canadian market, the Canada-U.S. transborder market, and internationally. Additionally, Air Canada has capacity purchase agreements with several regional carriers to extend its reach.

Conclusion

As Air Canada garners a strong-buy rating from Stifel Canada, many investors and analysts will be watching closely to see how the airline's financial projections and stock performance evolve in the coming months.

Airline, Stock, Earnings