12:43 PM EDT, 06/13/2025 (MT Newswires) -- National Bank has raised its target on Transat to $2.25, from $1.75 and reiterated its Underperform rating, after the company reported a second-quarter beat.

"We maintain our Underperform rating on Transat following fiscal Q2 results that were ahead of expectations," notes analyst Cameron Doerksen, but the company still has work to do to improve its leverage and profitability, he adds.

Based on National's updated forecast, net debt at the end of this fiscal year will be over $1.5 billion and year-end leverage at 4.5x, coming down to 4.2x at the end of F2026, Doerksen writes.

"Additionally, even after the debt restructuring and assuming a material improvement in profitability, we still forecast Transat to have negative net income."

Price: 2.41, Change: -0.07, Percent Change: -2.82