The Financial Post reports in its Wednesday edition investors with a high tolerance for risk may want to take another look at Air Canada.
The Post's Scott Deveau writes that of the 14 analysts covering the stock, nine have a buy rating, four have a hold and only one has a sell.
Their average price target is $3.93 a share, up from Air Canada's $2.35 close Tuesday on the Toronto Stock Exchange. Walter Spracklin, RBC Capital Markets analyst, said he felt Air Canada was increasingly becoming an "investable" company with attractive revenue growth, cost-cutting measures underway and a significant reduction in leverage.
"What we find particularly favourable is that many of the requirements or impediments to the company's cost reduction and revenue expansion plans have been cleared and now the focus sits squarely on execution," Mr. Spracklin said in an note to clients Tuesday.
He has a sector perform rating on the stock and a $3 price target.
"Share price volatility is likely to remain in the [Air Canada] shares in the near-term, which means investors should remain nimble," Mr. Spracklin said. Kevin Chiang, analyst at CIBC World Markets, has a sector outperformer rating and $4 price target on the stock.
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