01:47 PM EDT, 06/06/2024 (MT Newswires) -- National Bank is maintaining its Underperform rating and $2.25 target on Transat following its second quarter results.

Analyst Cameron Doerksen writes that in mid-May, Transat lowered its F2024 EBITDA margin expectation to ~5% from prior guidance of 7.5%-9% driven by challenges related to engine-related aircraft groundings, the impact from strike threats, and generally weaker yields, notably on trans-Atlantic routes, which is the company's primary revenue source in the summer period.

"In addition to a more pessimistic earnings outlook, we remain wary on the stock pending an expected comprehensive refinancing plan that could have negative implications for equity holders."

Price: 2.99, Change: -0.03, Percent Change: -0.99