RBC Capital Markets lowered its price target on Air Canada (AC.TO) to $20 from $23.

Analyst James McGarragle maintained a Sector Perform rating on shares of the Canadian airline following its quarterly results on February 13.

"Q4 results were solid with management flagging strong revenue trends in Q4 continued into January," McGarragle said in a note to clients. "Moreover, management reiterated 2025 guidance and highlighted encouraging booking and yield signals for Q2 and into Q3."

"However, guidance does not include any potential impact from tariffs, and we continue to see risk from FX," the analyst said.

"While we believe Air Canada's global network allows it to shift capacity away from trans-border in the event of sustained tariffs, we note the domestic environment is over supplied (as we have been flagging) and pacific lanes are facing yield pressure, thereby limiting alternatives."

(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)