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Investor Insights

This summary was created by AI, based on 50 opinions in the last 12 months.

The experts have mixed opinions about Air Canada (AC-T). Some believe it is a frustratingly cheap stock with potential for future growth, while others express concerns about the financial struggles, high debt, and volatile nature of the airline industry. There is also mention of recent share price weakness and reduction in debt as positive factors. Overall, it appears to be a challenging investment with potential for short-term trading but uncertain long-term prospects.

Consensus
Mixed
Valuation
Fair Value
Similar
Delta,DEL
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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DON'T BUY
Air Canada

Peter Lynch says buy what you love, however.... Compared to the US, he loves to fly AC. Difficult weather in Canada, hard to keep on schedule. Costs are higher, relatively small market. Travel business has done well, just not AC.

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PARTIAL BUY
Air Canada

Recent share price weakness due to tough nature of business and pandemic. Does not see much room for growth. Would wait for further weakness before buying. Good stock to trade, but not a good long term investment. 

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PARTIAL BUY
Air Canada

Reduction in debt a good thing. Trading well off recent stock price highs - good place to take small position. Not a big fan of airline business. 

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BUY
Air Canada

He just bought. Decent moves of late. Can be a frustrating stock because of spiking costs, labour unrest. Barrier to entry favours them. Rest of the year looks positive.

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TOP PICK
Air Canada

Trades at 3x EV-EBITDA vs. 4.5x historic. The overhang has been the neverending wait for the recession, and pilot negotiations and more Canadian competition are headwinds. AC is almost back to full pre-Covid capacity. Also, they're adding to the profitable Asia routes. Domestic routes are 30% and international 70%, so well-positioned. Their balance sheet is much better now. Assuming the EBITDA doesn't plunge, this should trade around $30.

(Analysts’ price target is $28.86)
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BUY
Air Canada

Has higher-than-normal risk now. Bullish case: Air traffic has returned to pre-pandemic levels. During the pandemic, AC increased operating efficiency and right-size its fleet to make them more profitably. Reduced debt a lot to 1x EBITDA from 6x. There's limited downside. Bearish: cheap carriers could pop up to challenge AC on ticket price. If interest rates remain low, then consumer will spend.

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DON'T BUY
Air Canada

Airlines must borrow a lot of money to buy planes while they're at the mercy of the wider economy which effect flight demand.  Also, they don't pay dividends and almost airlines have junk credit ratings. Westjet pilots just got a pay increase, but expect AC pilots to get a raise.

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PAST TOP PICK
Air Canada
(A Top Pick Jun 20/22, Up 1%)

Business is booming but the stock is up only 1% from its 2020 levels with the worst conditions in the airline industry. There are several airlines trading at good values.

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DON'T BUY
Air Canada

It's been flat even as the market has rallied. Is pent-up travel over? The economy is slowing down faster in Canada than the US, so it will impact travel. The only positive are lower fuel prices. The travel boom is not over, but a lot of it has.

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Unspecified
Air Canada

The issue is that they had a very big year as Covid concerns lessened but next year may not be as good. There are some cost issues and pricing power may not be as good. The business is cyclical which adds to the volatility so it is not a good stock for the long term. You could own other things that will do better.

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BUY ON WEAKNESS
Air Canada

The travel business enjoyed the revenge travel bounce, which is wearing off a bit. The managed Covid well by shifting to cargo shipping. But business travel will never return to pre-Covid levels. That said, this remains a good business, judging by their last report. A good long-term story. Buy on further weakness, not now. Economic slowdowns are a caveat, though.

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DON'T BUY
Air Canada

Airlines can't control headwinds such as higher labour and fuel costs. The U.S. airlines are already seeing the impact of higher oil prices. There are possible slowdowns in consumer spending and travel is still less than pre-Covid, especially in the lucrative business component since meetings can be done virtually.

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SELL
Air Canada

He sold his shares recently, because AC doesn't hedge their fuel costs, they must settle a pilot contract, and if the economy weakens it could impact their passenger load.

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Showing 1 to 15 of 506 entries

Air Canada(AC-T) Rating

Ranking : 4 out of 5

Bullish - Buy Signals / Votes : 18

Neutral - Hold Signals / Votes : 1

Bearish - Sell Signals / Votes : 24

Total Signals / Votes : 43

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, 43 stock analysts published opinions about AC-T. 18 analysts recommended to BUY the stock. 24 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?

43 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 2024-02-23, Air Canada (AC-T) stock closed at a price of $18.17.