Air Canada Vote & VV Receives a Buy from Canaccord Genuity

Air Canada Vote & VV (TSX: AC), the Services sector company, was revisited by a Wall Street analyst today. Analyst Doug Taylor from Canaccord Genuity reiterated a Buy rating, with a C$33 price target.

Taylor wrote:

“We maintain a BUY rating and a C$33.00 target. Call at 8:30am EST. Q1/18 Was Another Beat Across the Board Revenue: Reported C$4,071M vs. Street C$4,020M (CG C$4,001M) on 11.4% growth in traffic. Capacity growth was 8.6% Y/Y, which was more than we modelled, but the strong demand environment drove better load factors of 82.2% (CG 80.3%). RASM was up 2.9% Y/Y (Street at 1.6%; CG at 3.0%) with strong business cabin performance. EBITDAR/EPS: Adjusted EBITDAR of C$397M beat consensus of C$291M (our estimate was C$295M), though fuel costs were higher than the guide (we modeled 73.1 cents/ l vs. 73.3 cents/l reported). EBITDAR margins were 9.8%. Adjusted CASM at +0.4% Y/ Y was better than the prior guidance of +2 – 3% (CG 2.8%). Adjusted EPS was a loss of C$0.19 vs. Street at -$0.42 (CG -$0.39). LTM ROIC was 15.0%, up from 13.5% one year ago and sitting at the high end of the long-term guide of 13 – 16%.”

Taylor has an average return of 70.3% when recommending Air Canada Vote & VV.

According to TipRanks.com, Taylor is ranked #888 out of 4775 analysts.

Read also: Here’s Why Maxim Downgraded Chipotle (CMG) Stock Today

Currently, the analyst consensus on Air Canada Vote & VV is Strong Buy and the average price target is C$33.83, representing a 35.3% upside.

In a report issued on April 18, RBC Capital also reiterated a Buy rating on the stock with a C$32 price target.

Based on Air Canada Vote & VV’s latest earnings report for the quarter ending December 31, the company posted quarterly revenue of C$3.82 billion and GAAP net loss of C$11 million. In comparison, last year the company earned revenue of C$3.64 billion and had a GAAP net loss of C$37 million.

Air Canada provides airline transportation services. The company engages in full-service airline, scheduled passenger and cargo services, serving more than two hundred airports on six continents. It operates flights in Canada, the USA, Latin America, Europe, Australia and Asia.

The company’s shares closed on Friday at C$25.01.