The Globe and Mail reports in its Friday, Sept. 15, edition that Scotia Capital analyst Konark Gupta believes investors will be better off with Air Canada than with Transat AT. The Globe's Darcy Keith writes in the Eye On Equities column that Mr. Gupta notes that Air Canada stock has underperformed of late due to what he calls "overblown concerns" about customer demand and passenger yields beyond this summer. Mr. Gupta gives Air Canada a "sector outperform" recommendation. He currently rates Transat "sector underperform," primarily because of high debt levels. His unchanged $3.50 share target on Transat suggests the stock may fall from here. Mr. Gupta says in a note: "[For Transat] our improved EBITDA outlook and Mexico land sale proceeds are offset by higher-than-expected debt. The stock's rich EV/EBITDAR valuation of 6.2 times on estimated fiscal 2024 vs. AC's 2.8 times supports our 'sector underperform' rating. We also continue to see potential for equity dilution. Moreover, Transat's business model is relatively more sensitive to external factors such as GDP, fuel and FX, so we prefer to wait for significant deleveraging."