Bullish indicating open at $55-$60, IPO prices at $37
Investing.com - TD Cowen raised its price target on Air Canada (TSX:AC) (OTC:ACDVF) to C$25.00 from C$16.00 on Wednesday, while maintaining a Buy rating on the stock.
The firm updated its model for Air Canada to reflect first-quarter 2025 actual results and management’s guidance for the full year 2025. TD Cowen moved its EBITDA estimate to the high end of the company’s projected range.
The research firm noted several positive factors supporting its outlook, including management’s observation that while demand from Canada into the U.S. remains down by mid-teens percentages, this demand has not disappeared but rather shifted to domestic and Atlantic routes.
Additional tailwinds for Air Canada include more favorable foreign exchange conditions and easing trade tensions between the United States and Canada, according to TD Cowen’s analysis.
The new C$25 price target represents a multiple of 3.5 times the airline’s expected 2026 EV/EBITDA ratio, reflecting TD Cowen’s constructive view on the stock’s potential from current levels.
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