To watch: Transat AT, Tesla/Twitter and BCE

Is Elon Musk really leaving the direction of Twitter? (Photo: Getty images)

What to do with Transat AT, Tesla/Twitter and BCE shares? Here are some recommendations from analysts likely to move prices soon. Note: the author may have a totally different opinion from that presented by the analysts.

Transat AT (TRZ, $3.04): Desjardins analyst slightly raises its one-year target price

The airline last week released financial results for the fourth quarter of its fiscal year 2022 better than the crooks, which pleased Benoit Poirier, an analyst at Desjardins.

“Demand is growing and the capacity offered was 91% of that offered in the same period of 2019, compared to 82% for the third quarter. The pace of bookings is currently equivalent to that of 2019. We believe that the title of Transat is approaching a turning point, but we are waiting to see if the execution will be there, especially given the high debt of the company. society”, explains the analyst.

Benoit Poirier also comments on Transat management’s targets for fiscal year 2023. %.

“We saw these as positive steps towards a return to profitability for the business and expect an earnings before interest, taxes, depreciation and amortization (EBITDA) margin of 4.9% in 2023. However, due to the seasonality of demand, we believe negative profit margins (-3.6%) in the first quarter. Fiscal 2023 will be a transitional one and we don’t expect a return to positive cash flow before fiscal 2024, although management has said they want to be as close to breakeven as possible by the end of the year. this exercise”, says the analyst.

Benoit Poirier introduced his discounts for fiscal year 2025 with revenues of $3.1 billion (B$), an EBITDA margin of 11.4% and free cash flow of $135 million. . “Assuming that the stock could be earned at a ratio of 4.5 times the expected EBITDA of $376M in 2025, we arrive at a value of $8.14, which is far higher than the current price”, says- he.

The analyst reiterates his recommendation to “hold” the title, but raises its target price over one year from $3.25 to $3.50.

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