Home / Financial News / Alberta weakness and Zika virus spell turbulence for Transat: CIBC

Alberta weakness and Zika virus spell turbulence for Transat: CIBC

The weakening Canadian dollar, Zika virus and the possibility of a pilot strike are all additional headwinds that could put pressure on Transat's stock this winter.

Vacation tour operator Transat AT is facing a barrage of headwinds in 2016, putting more pressure on a company that’s already can not boost organic growth, according to a new analysis by CIBC.

As an effect, the financial institution has downgraded Transat to sector underperform from sector perform and cut its price target around the stock to $7 from $8.

The cut reflects “the intensifying competition in leisure travel, especially because the scheduled carriers shift capacity from Alberta into Eastern Canada,” analyst Kevin Chiang wrote inside a note to clients.

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