Air Canada shares to hit $13

[yycflyguy]

http://business.financialpost.com/2010/ ... citigroup/

Shares in Air Canada could soar in the coming years if the airline continues to show signs of stabilization, according to Will Randow, Citigroup Global Markets analyst.

“While our C$4 target implies 81% upside in the stock, a C$13 valuation could be plausible, over the next few years,” he said in a note to clients.

Firstly, he said the country’s largest carrier’s free cash flow, which is currently not accounted for in his 2011 base target, may add $2 a share in 2012.

Secondly, if the company’s multiple returns to previous levels following more signs of stability, like its second quarter result, it could incrementally add another $2, he said.

Finally, if Canadian interest rates rise once again it could “wipe out” the $2.7-billion pension solvency deficit that currently penalizes his valuation by $5 a share, Mr. Randow said.

Read more: http://business.financialpost.com/2010/ ... z0xRrf4StE

[yyz monkey]

A whole of of 'ifs' & 'mays' there..

[Marinth]

A whole of of 'ifs' & 'mays' there..

Most stocks are all a whole lot of ifs and mays.

[jjj]

To my old pal YYC,

What of the difference between the current negative operating operating margins and the speculation in that article? How do you get there?

Don't get me wrong - I track AC stock every day and as a capitalist I would hop on any day to make a fast buck.

I should have posted this under an alias - this has nothing to do with WS.

Here we go.


JJJ

[yycflyguy]

You WS guys make too much money if you are willing to play with AC stock. Just thought it was interesting how someone put a positive spin on AC finances. For it to hit double digits, lots would have to happen. ACE and their meddling ilk would have to dissolve, like they are speculating, and continued high yield traffic on BOTH the Atlantic and Pacific. Still talk of more 767s or 777s to take advantage of the Chinese reciprocity opportunity. Who knows. All the positive spin will come to an end closer to negots and it will only take one variable. Higher fuel, volcanic eruption, major international pandemic affecting the wedding plans of some , etc.

You owe me glug glug.... especially if you make money off AC.

[jjj]

Deal

[Phileas Fogg]