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Investing.com - RBC Capital has raised its price target on Air Canada (TSX:AC) (OTC:ACDVF) to C$27.00 from C$25.00 while maintaining an Outperform rating on the stock.
The firm’s quarterly estimates remain unchanged, with second-quarter 2025 EBITDA projected at C$928 million and full-year 2025 EBITDA at C$3.3 billion. This full-year estimate sits at the lower end of Air Canada’s guidance range of C$3.2 billion to C$3.6 billion and below the consensus estimate of C$3.4 billion.
RBC Capital cited several positive factors that could drive upside to its forecasts, including strengthening in the Canadian dollar, an inflection in travel spending (which increased 4.7% in May), and consistently lower fuel costs.
The firm increased its target multiple to 4.25x from 4.0x, reflecting Air Canada’s ability to reallocate capacity to higher-demand domestic and international markets.
Air Canada trades on the Toronto Stock Exchange under the ticker AC and is also available to U.S. investors through its over-the-counter listing under the ticker ACDVF.
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