The Globe and Mail reports in its Wednesday edition that Canaccord Genuity analyst David Tyerman is holding firm on his "buy" rating for Air Canada ($2.35). The Globe's Darcy Keith and Sonali Verma write in the Eye On Equities that Mr. Tyerman upgraded his target for the Class B by a quarter to $5.50. Mr. Tyerman says Air Canada is a high-risk stock that still has significant upside potential thanks to initiatives that include new aircraft, its discount carrier Rouge and cost-cutting plans. The analyst notes that Air Canada expects capacity growth of close to 10 per cent in 2014, based on considerably more international flying. This surprising growth, says Mr. Tyerman, "suggests significant market share gains for Air Canada from its new Boeing 777 and Rouge initiatives." The Canaccord stockpicker says: "Our rough calculations suggest a very large upside potential. However, the estimates assume success on initiatives, some of which are quite uncertain (e.g., Rouge), and the upside from others could be offset by competitive actions. Accordingly, there is a high degree of risk to our forecast." The average share target, according to Bloomberg, is $3.99. The shares have a 52-week range of 93 cents to $3.40.