11:53 AM EDT, 06/20/2025 (MT Newswires) -- Stifel Canada notes that the Competition Bureau's recommendations to enhance competition for the Canadian airline industry may be neutral/slightly negative for Air Canada ( ACDVF ).

"In our view, relaxing foreign ownership restrictions could be somewhat disruptive as it stands to benefit the smaller players more meaningfully than any valuation benefit AC might receive from an expanded shareholder list," writes analyst Daryl Young.

The key issue remains that Canada is a small, structurally high-cost market, with challenging route dynamics, meaning efforts to stimulate competition may be less effective,, Young adds. Furthermore, despite the duopoly dynamics, Air Canada ( ACDVF ) is not over-earning relative to the U.S. airlines.

Stifel Canada is maintaining its Buy rating and $23 target on Air Canada ( ACDVF ).

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