TD upgrades Air Canada amid reopening hopes

From BNN Bloomberg – link to source story

Ian Vandaelle, BNN Bloomberg | 10 May 2021

TD Securities is upping its view on Air Canada amid hopes rising vaccination rates will soon herald a return to more normal travel patterns.

In a note to clients, TD Securities Analyst Tim James said the pandemic-induced share-price weakness provided an attractive entry opportunity, prompting him to raise the stock to a buy from a hold rating, with a $30 price target in 12 months’ time.

“We believe that declining COVID-19 cases in Canada and a rapidly increasing proportion of the population that is vaccinated will be positive for sentiment towards the stock,” James said.

“We anticipate that these factors will unleash pent up demand for domestic and select international flights driving bookings (deposits) significantly higher.”

The pandemic has ravaged Air Canada, with revenue in its most recent quarter plunging 80 per cent amid travel restrictions and stay-at-home orders. Share of the company have been cut in half since last January as the pandemic took hold.