RBC Capital Markets raised its price target on Air Canada (AC.TO) to $22 from $17.
Analyst James McGarragle maintained a Sector Perform rating on shares of the Canadian airline following its quarterly results.
"Q3 results and the 2024 guide came in ahead of prior consensus on fuel and one-time contract-related adjustments - and we therefore view the core operating results as in line," McGarragle said in a note to clients.
"The buyback was well-received with the shares up >10%; however, given the flat to positive 2025 FCF guide, we expect any repurchases to be mostly financed with debt," the analyst said.
"We remain cautious on the yield environment into next year given meaningful expected capacity increases across the industry and recent cuts to Canadian immigration targets, and therefore see downside risk to consensus yield and load factor estimates."
(MT Newswires covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www.mtnewswires.com/contact-us)
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.