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)