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Investor Insights

This summary was created by AI, based on 34 opinions in the last 12 months.

Air Canada (AC-T) presents a mixed outlook among experts, with many acknowledging its strong brand, loyal customer base, and growth potential, especially in the U.S. market. However, concerns about the highly cyclical nature of the airline industry, significant capital requirements, and intense competition dominate sentiments. While some argue that the stock trades at attractive valuations compared to U.S. peers, others emphasize the risks from high debt levels, labor disputes, and volatile fuel costs. Predictions regarding target prices vary, with some suggesting potential upside if sentiment shifts positively, while others remain cautious, advising against long-term investments in the airline sector due to inherent challenges. Overall, the stock appears to be in a transitional phase, influenced by both market conditions and internal company dynamics.

Consensus
Mixed
Valuation
Undervalued
TOP PICK

It has rebuilt its balance sheet and the valuation is well below the historical average. It has lagged the U.S. airline stocks even though it has initiated a 12 month share buyback program. It is at a lower price today than the price for share buybacks, recent option offerings and insider buying in February. Travel should come off a bit but not as much as the drop in its stock price.         Buy 13  Hold 4  Sell 0

(Analysts’ price target is $24.65)
TRADE

Airlines are economically sensitive stocks. Technically, the chart shows a base, which suggests a swing trade. If, and only if, AC arcs up with definite conviction off support of $15 or so, it could head close to $24 (though might not quite make it).

Don't do it until it breaks out. Plus, you'll need a fundamental reason (such as Trump backing off tariffs).

TRADE

Deferred capex, a positive. Flexibility with its fleet. Strong balance sheet. Under 6x PE, way cheaper than US peers. Softness this year due to tariff uncertainty, sees growth returning in next couple of years. If tariffs don't go on, a nice buy. Put it in a non-registered account as more of a trading stock.

DON'T BUY

Does not find business attractive. Airline business very hard - high capital requirements with low margins. Would look elsewhere in the markets. 

WATCH

Powerful brand, great loyalty program, flights seem full. Concerns around trade war and cancelling US trips. Hurt by weak CAD, so concerns around input costs and margins. Buying back stock. Low valuation, decent time to look at it.

DON'T BUY

Does not invest long term in airlines. Business very hard - capita requirements very high, with low margins. Few barriers to entry - lots of new competitors. Oil prices are volatile - which creates difficulty in costs. No dividend makes this company hard to invest in. Better options elsewhere. 

DON'T BUY
Reach $30 in 6-9 months?

No. At a level of support around $20, a pretty strong move. Weak technicals, definitely in a downtrend, messy no-man's land. If we were earlier in the cycle, he'd support its trying to find a base here. Late cycle is big for energy; for airlines that aren't unhedged, that's going to be a big headwind as input costs come under pressure.

His team likes EIF, so take a look at that name.

premium

This is a Panic-proof Portfolio opinion which is available only for Premium members

Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

PAST TOP PICK
(A Top Pick Oct 10/24, Up 15.5%)Stockchase Research Editor: Michael O'Reilly

Our PAST TOP PICK with AC has triggered its stop at $20.  To remain disciplined, we recommend covering the position at this time.  Combined with our previous guidance, this will result in a net investment gain of 21%.

TOP PICK

Was $50 before pandemic, yet financials are virtually the same now as then. Massive upside. Being hit by sentiment left over from pandemic. Continues to tap into the US market. No dividend.

(Analysts’ price target is $27.50)
DON'T BUY

He never owns airlines. AC has failed to generate shareholder wealth creation historically. They take on too much debt, then buy back shares, then raise equity. Avoid. 

premium

This is a Panic-proof Portfolio opinion which is available only for Premium members

Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

PAST TOP PICK
(A Top Pick Oct 10/24, Up 42.6%)Stockchase Research Editor: Michael O'Reilly

Our PAST TOP PICK with AC is progressing well.  To remain disciplined, we recommend trailing up the stop (from $17) to $20 at this time.

premium

This is a Panic-proof Portfolio opinion which is available only for Premium members

Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

PAST TOP PICK
(A Top Pick Oct 10/24, Up 27%)Stockchase Research Editor: Michael O'Reilly

Our PAST TOP PICK with AC has achieved its target at $22.  To remain disciplined, we recommend covering half the position at this time and trailing up the stop (from $15) to $17.

BUY

Capital structure not great, but company appears to be growing. Capacity to China/Asia growing. Fuel costs coming down. Would recommend buying - price could reach ~$40/share. Overall, is positive on the business. 

COMMENT

The chart is a good example of volatility so it is not for the timid. It is a swing trade candidate. If owned then hold onto it. He is not sure about buying. Medium odds of gaining.

premium

This is a Panic-proof Portfolio opinion which is available only for Premium members

Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

TOP PICK
Stockchase Research Editor: Michael O'Reilly

The airline announced a labour deal with pilots, which should allow them to focus back on meeting demand growth.  We like that cash reserves are growing, while debt is aggressively retired.  It trades at 6x earnings and supports a robust ROE.  We recommend setting a stop-loss at $15, looking to achieve $22 -- upside potential of 25%.  Yield 0%

(Analysts’ price target is $22.00)
Showing 1 to 15 of 542 entries

Air Canada(AC-T) Rating

Ranking : 5 out of 5

Bullish - Buy Signals / Votes : 13

Neutral - Hold Signals / Votes : 13

Bearish - Sell Signals / Votes : 13

Total Signals / Votes : 39

Stockchase rating for Air Canada is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.

Air Canada(AC-T) Frequently Asked Questions

What is Air Canada stock symbol?

Air Canada is a Canadian stock, trading under the symbol AC-T on the Toronto Stock Exchange (AC-CT). It is usually referred to as TSX:AC or AC-T

Is Air Canada a buy or a sell?

In the last year, 39 stock analysts published opinions about AC-T. 13 analysts recommended to BUY the stock. 13 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Air Canada.

Is Air Canada a good investment or a top pick?

Air Canada was recommended as a Top Pick by on . Read the latest stock experts ratings for Air Canada.

Why is Air Canada stock dropping?

Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.

Is Air Canada worth watching?

39 stock analysts on Stockchase covered Air Canada In the last year. It is a trending stock that is worth watching.

What is Air Canada stock price?

On 2025-03-18, Air Canada (AC-T) stock closed at a price of $15.37.