BMO raises PT on Air Canada, sees demand offset fuel volatility
BUZZ-BMO raises PT on Air Canada, sees demand offset fuel volatility ** BMO raises price target on Air Canada AC.TO to C$30 from C$26 ($18.34); reiterates "outperform" rating
** New PT represents ~18% upside to stock's last close
** Robust demand trends continue to help the sector weather extreme fuel-price volatility, brokerage says
** If fuel-price volatility continues to ease, AC can reinstate its FY26 forecast and potentially provide an update on the CEO transition, alongside its Q2 results - BMO
** Brokerage raises its FY26 EBITDA estimate to C$3.4 bln from C$3.1 bln, and expects Q2 EBITDA to come in near the upper end of AC's forecast range of C$575 mln to C$725 mln
** Median PT of 15 brokerages covering the stock is C$25 - data compiled by LSEG
** Shares up ~32% YTD
($1 = 1.4178 Canadian dollars)
(Reporting by Megavarshini G. Somasundaram in Bengaluru)
((Megavarshini.SomasundaramGnanasundari@thomsonreuters.com))
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