TSE:AC
Air Canada (AC-T)
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Technical Analysis
Buy, Sell or Hold?
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Apr 16, 2025, 12:00 amThis summary was created by AI, based on 36 opinions in the last 12 months.
Air Canada (AC-T) is currently facing a challenging market environment with mixed analyst sentiments. Several experts point out that the airline sector remains highly cyclical and sensitive to economic fluctuations, making it a tough business, especially with high capital requirements and low margins. The company has a leveraged balance sheet and is undergoing stock buybacks, but there are concerns around travel demand, particularly business travel not returning to pre-pandemic levels. Despite these challenges, some analysts highlight the potential for valuation recovery, noting that the stock trades below historical averages and could rebound if economic conditions improve. There is a general consensus that while the stock is considered a trading opportunity rather than a long-term hold, there may be a short-term investment interest due to its low price relative to potential earnings.
Started to put in a bit of a bottom a couple of months ago, as did many other airlines. This name's had a big move higher. There are 2 ways to consolidate: in price (sharp pullback) or in time (move sideways). Thinks we'll see consolidation at least for a bit, perhaps with a slight downward bias. (In tech analysis it's called a "flag".) Once done, it should resume the uptrend and move higher.
Once we get into August, put on the brakes or at least assess the risk.
Premium contentWe reiterate AC as a TOP PICK. The company is adjusting to uncertainty over North America air traffic, which is a result of their well diversified route portfolio. Cash reserves continue to grow as debt is retired and shares bought back. It trades at 10x earnings, 3x book and supports a ROE of 125%. We recommend trailing up the stop (from$13.00) to $14.50, looking to achieve $24.00 -- upside potential of 20%. Yield 0%
(Analysts’ price target is $23.74)Premium contentIt is trading near the levels seen at the early stages of the pandemic. Trade war fears have dragged down the airlines but this is overdone. Air Canada is at an 80% booking level which is normal. Its flights to the U.S. are down but international business is strong. It makes more money on international flights than domestic. The price is still OK. Buy 14 Hold 2 Sell 1
(Analysts’ price target is $23.09)Premium contentCanada's largest airline just announced resumption of service from the nation's capital to London UK -- signs of global schedule shuffles and adjusting to declining US bookings. We like that debt is being aggressively retired and shares bought back. It trades at 6x earnings, 2x book and supports a robust 108% ROE. We recommend setting a stop at $9, looking to achieve $18 -- upside potential of 28%. Yield 0%
(Analysts’ price target is $23.42)Airline stocks are not long-term holds. Travel is discretionary, especially for pleasure. Most profitable part is business travel, which won't make a full recovery to pre-Covid levels. Air travel to US is suppressed. CAD at this low level doesn't bode well for overseas purchasing power. Massively leveraged balance sheet, plus looming tariffs.
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)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).
Air Canada(AC-T) Rating
Ranking : 5 out of 5
Bullish - Buy Signals / Votes : 14
Neutral - Hold Signals / Votes : 14
Bearish - Sell Signals / Votes : 14
Total Signals / Votes : 42
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, 42 stock analysts published opinions about AC-T. 14 analysts recommended to BUY the stock. 14 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?
42 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 2025-07-03, Air Canada (AC-T) stock closed at a price of $21.92.
It is a trading opportunity and not a long term hold. There is still upside and there has been insider buying. It has announced an issuer bid. 18% of shares have been bought and cancelled in a year so revenue per share is going up. It is trading at a discount to its American peers and to its historical valuation.