Highlights
Raymond James Financial has raised its 12-month price target on Air Canada (TSX: AC) to CAD 27.00, up from a previous target of CAD 24.00, while maintaining its "Buy" rating. The revision comes as the stock trades around CAD 21.58, reflecting a modest 0.8% gain on the day.
The updated guidance implies a potential upside of more than 25% from the current share price, indicating continued analyst confidence in the airline's valuation trajectory despite ongoing sectoral challenges such as fuel cost volatility and macroeconomic headwinds.
Air Canada, Canada’s flag carrier, has been navigating a complex post-pandemic operating environment marked by fluctuating travel demand, labour cost inflation, and fleet modernization efforts. Recent earnings have shown recovery in passenger volumes and revenue, but margins remain under pressure due to increased operating expenses and global supply chain constraints.
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