BUZZ-CIBC cuts Air Canada PT on fuel costs and tariffs pressure

CIBC Capital Markets cuts PT on Air Canada AC.TO to C$24 from C$28, citing fuel price volatility and tariffs pressure

New PT is an over 35.2% upside to stock's last close

Brokerage says company might incur incremental fuel costs of approximately C$380 million ($267.85 million) in excess of its forecast, driven by a weaker CAD

"Concerns over demand, especially transborder travel as Canadians might book away from the U.S. in the face of a tariff war between the two countries, has been viewed as a growing risk," says brokerage

15 of 17 brokerages rate stock "buy" or higher, and 2 "hold;" median PT is C$26, per data compiled by LSEG

Stock has fallen over 21.7% YTD after climbing over 19.1% in 2024

($1 = 1.4187 Canadian dollars)