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Investing.com - BMO Capital has lowered its price target on Air Canada (TSX:AC) stock to C$28.00 from C$29.00 while maintaining an Outperform rating following the resolution of the flight attendants’ strike.
The price target reduction reflects BMO’s adjusted model incorporating a preliminary estimate of approximately C$400 million in direct one-time EBIT impact from the strike. The firm also factored in a modest impact on forward bookings.
BMO Capital noted that based on the initial deal terms, the financial implications likely remain within the range of outcomes contemplated in Air Canada’s medium-term financial framework.
The firm expressed confidence that given Air Canada’s strong moat and market position, the events are not expected to cause lasting brand damage to the airline.
Air Canada shares also trade on the OTC market under the ticker (OTC:ACDVF).
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