AC CN

Air Canada

Industrial/Transportation


Presented:01/16/2019
Price:CA$28.04
Cap:$6.07B
Current Price:CA$17.23
Cap:$4.94B

Presented

Date01/16/2019
PriceCA$28.04
Market Cap$6.07B
Ent Value$7.40B
P/E Ratio19.71x
Book ValueCA$16.68
Div Yield0%
Shares O/S270.68M
Ave Daily Vol1,309,315
Short IntN/A

Current

PriceCA$17.23
Market Cap$4.94B
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. Air Canada was founded on April 11, 1936 and is headquartered in Saint-Laurent, Canada.

Publicly traded companies mentioned herein: Aimia Inc (AIM CN), Air Canada (AC CN), American Airlines Group Inc (AAL), Delta Air Lines Inc (DAL), United Continental Holdings Inc (UAL), WestJet Airlines Ltd (WJA CN)

Highlights

The presenter is long shares of Air Canada (“AC”) following the repurchase of its loyalty program Aeroplan, which should provide growth and capital structure improvements. Bullish cyclical trends could also play a role in the airline’s growth going forward. Citing its historical discount to US competitors, he considers the stock to be cheap. As perception about the Canadian airliner improves, its trading multiples should converge with its more expensive peers, & the stock could trade up toward the $36 - $42 range (6x - 7x a 2020 EPS forecast of $6). 

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Idea Discussion

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