ACDVF - Air Canada is called a sleeper stock in the airline sector by BMO Capital
2023-05-15 13:56:23 ET
BMO Capital defended the upside left for Air Canada ( OTCQX:ACDVF ) on Monday even after shares ran up a double-digit post-earnings gain. Air Canada reported a 90% jump in revenue for Q1 and narrowed its operating loss dramatically, which brought some buyers back into the stock.
Analyst Fadi Chamoun pointed to the strong Q1 earnings report and thinks the carrier has strong momentum going into the peak summer season. Chamoun said the market reaction to meaningful earnings and free cash flow beats from Air Canada continues to be surprisingly muted, with macro uncertainty and concerns around demand durability holding back sentiment.
Chamoun and team think Air Canada's ( OTCQX:ACDVF ) strong competitive moat and restored profit and balance sheet warrant an even higher valuation. The firm kept an Outperform rating in place on the thinly-covered airline stock.
More on Air Canada:
- Air Canada: Long-Term Air Travel Demand Remains The Key Metric
- More articles from Seeking Alpha analysts
- Growth metrics on Air Canada
- Air Canada earnings call transcript
- Seeking Alpha's Quant Rating for Air Canada
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Air Canada is called a sleeper stock in the airline sector by BMO Capital