Air Canada analysts slash targets on ‘bad to worse’ guidance

Air Canada analysts reduced their price targets after the airline withdrew its forward guidance Monday in response to the Covid-19 pandemic. The company said it’s “facing a severe drop in traffic and a corresponding decline in revenue.” Canadian prime minister Justin Trudeau said Monday the country would close its borders to all foreign travellers except Americans. Air Canada said it had cash, cash equivalents, short and long investments of C$7.1b as of March 13, an amount that analysts see as sufficient despite the unknown length of the coronavirus impact. Air Canada shares have lost more than 66% this year and fell as much as 12% in early trading Tuesday in Toronto Canadian Imperial Bank of Commerce, Kevin Chiang said: “We see 2020 as a lost year and assume traffic begins to normalise” in the second half of 2021. <br/>