On Friday, TD Cowen maintained a positive outlook on shares of Air Canada (AC:CN) (OTC: ACDVF), reasserting a Buy rating with a price target of Cdn$19.00. The airline is currently in a pivotal phase of negotiations with its pilot union, as the 21-day cooling-off period is set to conclude on September 17, with the possibility of a strike on the horizon if an agreement isn't reached.
Despite the potential for short-term volatility due to the ongoing labor discussions, TD Cowen anticipates that a successful resolution will serve as a significant positive event for Air Canada. The firm, however, has slightly adjusted its estimates downward in light of the potential for customers to book with other airlines during this period of uncertainty.
Air Canada is engaged in a delicate period of negotiations, and the outcome is critical for the company's near-term trajectory. With the cooling-off period ending soon, the potential for a strike looms, which could impact operations and investor sentiment.
The analyst from TD Cowen expressed confidence in the airline's long-term potential, suggesting that the current situation presents a compelling opportunity for investors despite the short-term risks. The firm's maintained Buy rating and price target reflect this optimism.
As the September 17 deadline approaches, stakeholders in Air Canada will be closely monitoring the situation, hoping for a resolution that avoids a strike and aligns with the company's growth and recovery plans post-pandemic challenges.
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