Q: Was hoping Air Canada would pop a lot better post-COVID. What does your crystal ball see for next 12-24 months?
I feel like this is a double whammy: no dividend and no growth which is not a good look for any holding!
thanks.
I feel like this is a double whammy: no dividend and no growth which is not a good look for any holding!
thanks.
5i Research Answer:
We too expected 'more' here. But to be fair, the stock is up 28% this year and 47% in one year. Consensus calls for a big swing in profits this year (loss of $4.21 in 2022 to profit $2.77 in 2023) and at least 25% growth in 2024. The stock remains very cheap if this prediction comes true. Investors remain concerned about a recession, but we think the stock can still do better in a normal market environment. We would not expect a dividend, likely ever.