Thanks
AC’s revenue has recently recovered to near 2019 levels, as travelling demand is coming back. It is now trading at 7.0x times' Forward P/E. COVID has been a huge headwind for the company in recent years. As a result, the balance sheet is leveraged, with net debt of $7.5B. Net debt/EBITDA is currently around 3.9x, which AC expects to go down as profitability improves. Based on consensus estimates, EBIT is expected to be positive for the very first time since COVID, of around $1.9B in 2023. We would be comfortable with AC as a higher-risk cyclical play. It has room for improvement to the profitability level in 2019. Macro risk is probably the biggest worry now. We think it can be owned but can't comment on personal position sizes.