Air Transat is rising: Time to buy TRZ stock buy?

Summary

  • Air Transat stock might gain momentum in future.
  • Air Transat could benefit if the airlines and tourism industry starts to recover this year.
  • Air Transat stock expanded by 31 per cent in the last three months.

Stocks of Transat A.T. Inc. (TSX:TRZ) rose by about one per cent at market open on Friday, July 15, trading at C$ 6.03 apiece (10:15AM EST).

While there was no company-specific news ahead of this spike, it could have been due to Airbus SAS joining Quebec's efforts of bringing sustainable aviation fuel to the market.

While Canada is focusing on its efforts to reduce greenhouse gas emissions (GHG), the airline industry, too, is exploring ways to contribute to the government's ambitious plans of combatting climate change.

Airbus has said that it will lend support in this mission to the Montreal-based SAF+ Consortium, which includes Air Transat.

SAF+ Consortium was established through a coalition of companies to develop solutions for low-carbon flying. The consortium is reportedly on track to produce alternative fuel and reach the supply target of 30 million litres per year by 2025.

Is Air Transat (TSX:TRZ) worth your money?

The airline industry might bounce back from its pandemic lows as and when normal travel operations are resumed in Canada. This would also likely benefit Air Transat’s performance.

On June 21, Transat A.T. announced that its acquisition discussion with billionaire Pierre Karl Péladeau had come to an end.

 


1-year chart of stock performance, volume and moving average exponential of Transat A.T. (Source: Refinitiv)

The Canadian billionaire had offered to buy all Transat shares for C$ 5 apiece, but Transat didn't find the offer to be reasonable.

TRZ stock has surged by about ten per cent year-to-date (YTD) and jumped by 31 per cent in the last three months.

In Q2 2021, Transat recorded revenues of C$ 7.6 million, as compared to that of C$ 571.3 million in Q2 2020. Its operating loss stood at C$ 50.96 million in the latest quarter, as against a net income of C$ 21.1 million in Q2 2020.
The above constitutes a preliminary view and any interest in stocks should be evaluated further from an investment point of view. The reference data in this article has been partly sourced from Refinitiv.

Comment


Disclaimer

   
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK