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Investor Insights

This summary was created by AI, based on 43 opinions in the last 12 months.

The experts seem to have mixed opinions about Air Canada (AC-T). Some believe that the stock has potential for growth, especially with the rebounding of air traffic and reduction in debt. However, others are more cautious, citing concerns about the high volatility of the airline industry, the cyclical nature of the business, and potential challenges such as rising energy costs and increased competition. Overall, it seems the stock is seen as a risky investment with limited upside in the long term.

Consensus
Mixed
Valuation
Fair Value
DON'T BUY
Air Canada

Airline business very hard. Would not recommend investing. Too much leverage and cyclical revenues. High capital expenditures also make it hard to earn profits. Travel preferences very fickle among consumers.  

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DON'T BUY
Air Canada

Stock price almost near a floor (good time to buy). However, market cycle moving towards a bad time for airlines. Would not recommend buying. Seeing higher prices going forward (not good for business). 

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TOP PICK
Air Canada

The last time the balance sheet looked like this the stock price was $50. As the population grows there is more demand now. It trades at 3 or 4 times earnings so is very cheap. Governments are pretty much out of the airline industry globally.      Buy 12  Hold 2  Sell 1

(Analysts’ price target is $27.32)
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TRADE
Air Canada

More possible downside from here, as shown by the short-term trough that was taken out recently. Technically, very clear and obvious support below where it is now, generally around $16.50. Wouldn't be surprised if it found support and then bounced around. If it breaks that, get out. 

He owns this in his aggressive trading portfolio.

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DON'T BUY
Air Canada
The Street is bullish; price target suggests a double from here.

Not a great investment for many years. Airlines, in general, are a tough business. Huge fixed costs, Boeing issues are restraining capacity. Possible short-term benefit if WestJet mechanics strike, until the strike is settled. 

One of his criteria is the balance sheet. High-yield bond issuer. Still has a fair bit of debt. When he goes to work every day, he has his 5 biggest investment mistakes sitting on his desk -- the common theme was that they each had too much debt.

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DON'T BUY
Air Canada

Strong brand. Airlines remain an extraordinarily difficult, capital-intensive business. Exposed to labour unions, commodity pricing, and heavy regulation. Profitability challenged, high debt.

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RISKY
Air Canada

Tough business to make money in, but can be traded on market volatility. Is a risky asset class, and would recommend as small portion of portfolio. 

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DON'T BUY
Air Canada

It is below the support level of $18. There is not much buying so there is no volume support. A general statement - just because a stock is low does not mean it is going up.

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DON'T BUY
Air Canada

US airlines have picked up more, but Canadian ones just haven't. Stuck in a multi-year range of $16-24. Transports have started to pull back on both sides of the border. Caught in a sector correction.

(Analysts’ price target is $27.00)
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WAIT
Air Canada

Weak. 200-day MA is going down, and you don't want to see that, as it doesn't revert quickly. Has to go out to the wilderness and discover itself. First place is $15.50, so drifting lower from today. Trying to make a bottom. US carriers starting to see softness. Good for passengers if tickets go on sale.

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BUY
Air Canada

Likes business and expecting further growth. Not seeing rebound in share price since Covid-19. Trading at 2-3x earnings - probably a good time to invest. 3rd quarter usually the best time for business. Would recommend buying. 

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DON'T BUY
Air Canada

Never buys airlines, too volatile. He'd mad at AC because it's always late and service is not good, overcharged for plane tickets. A tough business.

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PAST TOP PICK
Air Canada
(A Top Pick Feb 10/23, Down 17%)

It has the same metrics as pre-pandemic, selling at 3x earnings, yet air traffic has surpassed pre-pandemic. Airlines have a bad name which will take time to fade. He saw an interview from Delta's CEO that their business and first classes are full and are raising prices. AC will do very well.

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DON'T BUY
Air Canada
Call options in a registered account?

No-go for him. Yes, air travel is rebounding and there's lots of demand. But it's what you don't see under the surface that's the problem. AC had financial struggles during Covid, and now they have a lot more debt. Issued shares to stave off bankruptcy. Less upside now than there was. Very volatile industry.

High beta combined with options could result in 100% loss of capital. Doesn't recommend. Look for something more undervalued. See his Top Picks.

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RISKY
Air Canada

Frustratingly cheap. Earnings look pretty good 2024-2026. Trading at a low multiple. 30% discount to US peers. Will work at some point. For more speculative capital, as it's an airline. This is the time in the cycle to own it.

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Air Canada(AC-T) Rating

Ranking : 4 out of 5

Bullish - Buy Signals / Votes : 12

Neutral - Hold Signals / Votes : 0

Bearish - Sell Signals / Votes : 17

Total Signals / Votes : 29

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, 29 stock analysts published opinions about AC-T. 12 analysts recommended to BUY the stock. 17 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?

29 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 2024-07-23, Air Canada (AC-T) stock closed at a price of $16.43.