08:07 AM EDT, 06/27/2024 (MT Newswires) -- Air Canada ( ACDVF ) is a "deep value" stock, CIBC Capital Markets said.

"With the stock hovering at $17..., we highlight just how negative the sentiment has become on AC," analyst Kevin Chiang said in a note to clients.

"While we recognize that concerns over the health of the Canadian consumer and AC's pilot negotiations are weighing on shares..., we make the case that its equity is being overly penalized," Chiang said.

"Despite the recovery in AC's earnings and leverage ratio, its enterprise value as of June 26 is 35% below pre-pandemic levels," the analyst said. "We view this as a significant disconnect relative to how the U.S. mainline carriers - American Airlines Group Inc. (AAL), Delta Air Lines Inc. (DAL), United Airlines Holdings Inc. (NGS) - have traded."

Chiang maintained an Outperformer rating and $28 price target on Air Canada ( ACDVF ) shares.

(MT Newswires covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www.mtnewswires.com/contact-us)