Latest news with #FadiChamoun
Calgary Herald
30-07-2025
- Business
- Calgary Herald
Air Canada shares plunge as decline in travel to U.S. hits bottom line
The trans-border market's weaker performance partly reflected the impact of increased foreign exchange volatility leading to a softer Canadian dollar versus the U.S. dollar. It was also affected by geopolitical and macroeconomic concerns as a result of actions, statements and uncertainty surrounding U.S. tariffs and related countermeasures, both of which negatively affected travel demand, it said. In response, Air Canada reduced its capacity in the trans-border market in the second quarter and first six months of 2025, it said. 'We are closely monitoring the state of the Canada-U.S. sector, where we see a decrease in overall market capacity,' said Galardo. He said passenger revenues from trans-border travel declined 11 per cent to $961 million in the second quarter and are down eight per cent at $1.95 billion for the year so far compared to 2024. Domestic travel, on the other hand, is experiencing capacity growth as assets are redeployed from the U.S. routes, said Galardo. 'We kept a strong and steady presence and offered more options for travellers to explore the country, increasing capacity on key leisure destinations,' he said. Domestic passenger revenues grew three per cent year over year to $1.38 billion in the second quarter. The airline attributed the growth to the year-over-year increase in operated capacity and traffic, partially offset by lower yields. Galardo said they continue to witness strong demand for their international network through the end of the year and into early Q1 of 2026. 'Booking trends continue to evolve,' he said as fall and early winter periods see greater relative strength as opposed to historical norms. BMO Capital Markets transportation analyst Fadi Chamoun said revenue per available seat mile (RASM) was better than expected and booking trends appear positive judging by advanced ticket sales that are two per cent above forecast. Royal Bank of Canada analyst James McGarragle said the broader narrative of demand recovery and operational realignment remains intact despite the modest cost-related headwinds in the quarter. Air Canada maintained the 2025 full year guidance it provided in May. National Bank analyst Cameron Doerksen said he remains positive on Air Canada shares over the longer term, but does note some near-term risks that warrant caution, notably negotiations with the flight attendants and related strike risk potentially later in August. 'Although the macroeconomic backdrop remains uncertain and a risk for the stock, demand for air travel remains stable,' Doerksen said in a note. Bookmark our website and support our journalism: Don't miss the business news you need to know — add to your bookmarks and sign up for our newsletters here.
Yahoo
04-07-2025
- Business
- Yahoo
Bombardier flies high while analysts soured on one of the Big Three telecoms
The week may have been short, but there was no shortage of analysts' investing notes breaking down some of the stocks that should be on investors' radars. Keep reading to find out why Bombardier took off and why gold stocks aren't the only commodity equities that are glittering. Bombardier Inc. (BBD/B) was flying high this week with the stock reaching its highest level since 2011 on news of a massive deal for the purchase of 50 private jets from the Montreal-based planemaker. Shares closed Wednesday up 21 per cent on news of the US$1.7 billion deal that could morph into a US$4 billion contract if the anonymous buyer exercises an option for 70 more aircraft. BMO Capital Markets analyst Fadi Chamoun raised his price target for the shares to $150 from $130, while Desjardins Securities analyst Benoit Poirier raised his target to $175. 'The business aviation cycle remains on firm footing and the recent significant order for 50 aircraft announced on June 30 further solidifies the outlook,' Chamoun said in a note. Shares of the planemaker failed to lift off in the early part of the year as tariff worries weighed them down. But, the clouds lifted in early April as tariff concerns eased, Bloomberg Intelligence analysts said. That cleared the runway for a steady climb to Wednesday's gain. Bombardier shares closed Friday at $149.75, up almost 30 per cent for the week. With a new quarter underway, RBC Capital Markets has updated its Top 30 global ideas for stocks. 'The Top 30 list is built around bottom-up best ideas that we also view as offering attractive positioning in the current environment,' Graeme Pearson and Mark Odendahl, co-heads of global research, said in a note. Among the Canadian additions to the list are Barrick Mining Corp. (ABX) and Brookfield Corp. (BN). In the case of Barrick, RBC said the Toronto-based gold miner is trading at an 'unusually large discount to peers.' The Capital Markets team said share buybacks and continuing strength in gold prices are among the keys to driving returns, while cautioning that some patience might be called for before seeing returns. RBC has a price target of $35.24 for Barrick and $110.27 for Brookfield. Barrick closed Friday at $29.18. Brookfield closed at $87.39. Meanwhile, a few Toronto-listed companies held on to their spots on the list, including Alimentation Couche-Tard Inc. (ATD), Canadian Pacific Kansas City Ltd. (CP) and Constellation Software Inc. (CSU). RBC has price targets of $94 for retail giant Couche-Tard, $127 for Canadian Pacific and $5,700 for Constellation. RBC likes Montreal-based Couche-Tard for a recovery in consumer spending, improvements in procurement and the opportunity for more acquisitions. It remains hot on Canadian Pacific as it believes the purchase of Kansas City Southern Railway 'significantly improves network reach.' On Constellation: 'We believe that Constellation Software is likely to generate one of the highest returns for shareholders over the long term in our coverage universe,' RBC said. Couche-Tard closed at $69.13, CP at $81.03 and Constellation at $5,005.00. BMO Capital Markets is making the call that there's reason for some investing optimism where two of Canada's three major wireless providers are concerned. 'The wireless pricing environment appears to be improving (becoming less negative) with operators raising prices in April and largely maintaining those levels through the quarter,' Tim Casey, telecom, media and cable analyst at BMO, said in a note. He raised his price targets for Rogers Communications Inc. (RCI/B) to $57 and Telus Corp. (T) to $24. Rogers completed a $7 billion financing deal to help close the purchase of BCE Inc.'s share of Maple Leaf Sports and Entertainment Ltd., with Casey noting, 'Rogers' sports assets provide significant upside potential.' For Telus, Casey said the Canadian-radio Television and Telecommunications Commission's recent decision on wholesale fibre is a 'tailwind.' Rogers closed at $44.04 on Friday and Telus closed at $22.03. BCE Inc. the remaining telco of the Big Three, was noticeably absent from BMO's upgrade note for Telus and Rogers. But it was on CIBC Capital Markets' radar. The company's beleaguered stock, down 10 per cent year to date, took a blow this week, falling as much as 3.2 per cent intraday when CIBC downgraded its rating to neutral from its previous rating last summer of outperform. Rogers is up 1.2 per cent from the start of the year and Telus is up almost 11 per cent. CIBC has a price target of $33. BCE rebounded on Friday to close at 30.84. Prices for copper have risen on the spectre of U.S. tariffs and now analysts at RBC Capital Markets think that equities have finally caught up with the commodity. 'North American copper equities under coverage are up 14 per cent year to date, significantly outperforming the LME (London Metals Exchange) copper price, up four per cent despite materially underperforming in Q1,' equity analysts Sam Crittenden and Harrison Reynolds said in a note. Preferred names in the copper mining space for the pair include Hudbay Minerals Inc. (HBM), Capstone Copper Corp. (CS) and First Quantum Minerals Ltd. (FM). They have a price target of $17 for Hudbay, $12 for Capstone and $25 for First Quantum. The trio of companies closed at $14.55, $8.58 and $25.07, respectively. Why BMO thinks Costco shares still have room to run and other calls from the week in stocks The week in stocks: Empire, Algoma Steel, and why the case for the trade in war 'keeps getting stronger' • Email: gmvsuhanic@ Every week, the Financial Post breaks down the most interesting developments in the week's world of investing, from top performers to surprising analyst calls and stocks to have on your radar. Are you an investor looking for stock ideas and market insight? Sign up for the weekly FP Investor Newsletter here to get the best of the Financial Post's investing news, analysis and expert commentary straight to your inbox.
Business Insider
07-06-2025
- Business
- Business Insider
BMO Capital Reaffirms Their Hold Rating on Saia (SAIA)
BMO Capital analyst Fadi Chamoun maintained a Hold rating on Saia (SAIA – Research Report) today and set a price target of $280.00. The company's shares opened today at $257.50. Confident Investing Starts Here: Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter Chamoun covers the Industrials sector, focusing on stocks such as Saia, CAE, and Canadian National Railway. According to TipRanks, Chamoun has an average return of 13.3% and a 63.38% success rate on recommended stocks. In addition to BMO Capital, Saia also received a Hold from Bank of America Securities's Ken Hoexter in a report issued yesterday. However, on the same day, Benchmark Co. maintained a Buy rating on Saia (NASDAQ: SAIA). The company has a one-year high of $624.55 and a one-year low of $229.12. Currently, Saia has an average volume of 791.5K.
Globe and Mail
02-05-2025
- Business
- Globe and Mail
1 Wall Street Analyst Thinks UPS Stock Is Going to $135. Is It a Buy at Around $95?
Analyst Fadi Chamoun at BMO Capital recently lowered his price target for UPS (NYSE: UPS) stock to $125 from $130 but maintained an outperform rating on the stock. Even though the analyst lowered the price target, it still represents a 29% premium to the current price, and an outperform is de facto a buy recommendation. A balanced viewpoint on UPS The analyst's reasoning makes perfect sense. On the plus side, UPS' first-quarter earnings were above expectations, and management's ongoing reduction of lower- or no-margin delivery volume, while investing in growing higher-margin volume, is a long-term benefit as well. Furthermore, management expects to take $3.5 billion out of expenses due to its ongoing efficiency initiatives and the reduction in Amazon volume. Moreover, there's no way to get around the fact that trade conflicts harm transportation companies. And the uncertain environment surrounding the tariff conflict led UPS management to forgo updating investors on its full-year target in the recent earnings presentation. Is UPS stock a buy? It's a buy if you are prepared to be patient and have a tolerance for bad news. UPS may cut its guidance if the trading environment doesn't improve and its dividend is not well covered by cash flow. The lack of a full-year guidance update is ominous and may lead to UPS missing its initial full-year guidance for the third year running. On the other hand, its strategic initiatives (e.g., reducing Amazon volume, cutting costs, focusing on higher-margin deliveries) make sense and help set the company up for long-term growth. As such, the outperform rating makes sense -- just be prepared for volatility if you buy in and don't rely too heavily on the dividend. Should you invest $1,000 in United Parcel Service right now? Before you buy stock in United Parcel Service, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and United Parcel Service wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $611,271!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $684,068!* Now, it's worth noting Stock Advisor 's total average return is889% — a market-crushing outperformance compared to162%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of April 28, 2025 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Lee Samaha has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon. The Motley Fool recommends United Parcel Service. The Motley Fool has a disclosure policy.
Yahoo
02-05-2025
- Business
- Yahoo
1 Wall Street Analyst Thinks UPS Stock Is Going to $135. Is It a Buy at Around $95?
UPS faces plenty of near-term headwinds as its trading environment is negatively impacted by trade conflicts. The company is taking strategic actions to improve long-term profitability, making the stock more attractive for investors. Analyst Fadi Chamoun at BMO Capital recently lowered his price target for UPS (NYSE: UPS) stock to $125 from $130 but maintained an outperform rating on the stock. Even though the analyst lowered the price target, it still represents a 29% premium to the current price, and an outperform is de facto a buy recommendation. The analyst's reasoning makes perfect sense. On the plus side, UPS' first-quarter earnings were above expectations, and management's ongoing reduction of lower- or no-margin delivery volume, while investing in growing higher-margin volume, is a long-term benefit as well. Furthermore, management expects to take $3.5 billion out of expenses due to its ongoing efficiency initiatives and the reduction in Amazon volume. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » Moreover, there's no way to get around the fact that trade conflicts harm transportation companies. And the uncertain environment surrounding the tariff conflict led UPS management to forgo updating investors on its full-year target in the recent earnings presentation. It's a buy if you are prepared to be patient and have a tolerance for bad news. UPS may cut its guidance if the trading environment doesn't improve and its dividend is not well covered by cash flow. The lack of a full-year guidance update is ominous and may lead to UPS missing its initial full-year guidance for the third year running. On the other hand, its strategic initiatives (e.g., reducing Amazon volume, cutting costs, focusing on higher-margin deliveries) make sense and help set the company up for long-term growth. As such, the outperform rating makes sense -- just be prepared for volatility if you buy in and don't rely too heavily on the dividend. Before you buy stock in United Parcel Service, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and United Parcel Service wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $611,271!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $684,068!* Now, it's worth noting Stock Advisor's total average return is 889% — a market-crushing outperformance compared to 162% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of April 28, 2025 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Lee Samaha has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon. The Motley Fool recommends United Parcel Service. The Motley Fool has a disclosure policy. 1 Wall Street Analyst Thinks UPS Stock Is Going to $135. Is It a Buy at Around $95? was originally published by The Motley Fool Sign in to access your portfolio
