The Globe and Mail reports in its Friday, April 5, edition that RBC Dominion Securities analyst James McGarragle assumed coverage on Air Canada with a "sector perform" ranking and a Street-low share target of $18. The Globe's David Leeder writes that analysts on average target the shares at $27.99. Mr. McGarragle warns pricing normalization and cost headwinds are likely to weigh on Air Canada's 2024 results. He says in a note: "Our non-consensus view on Air Canada is predicated on a normalizing demand environment in 2024 and higher capacity in the domestic market, the combination of which we believe will pressure load factors and pricing. Moreover, we see upside risk to costs due to the pilot contract negotiation. Our estimates are very sensitive to these metrics and our 2024E EBITDA represents the Street low. We also see FCF as challenged, which we expect to limit shareholder return opportunities. We believe these risks are appropriately reflected in the shares at current levels. We expect a normalization of demand following a surge in travel emerging from the pandemic. ... Our cautious view is predicated on weakening demand as well as increased capacity, both of which we see pressuring pricing in the near term."