UBS analyst Fadi Chamoun has dropped his coverage of ACE Aviation Holdings Inc. (OTC:ACEAF), opting instead to focus his coverage on the holding company’s primary interest, Air Canada (AIDIF.PK).
In a note to clients Monday, he said:
We are dropping coverage because the unwinding of ACE is in its last stage. We will continue to cover the implications of this unwinding for Air Canada.
The last sum-of-its-parts valuation UBS held on ACE was C$26. Mr. Chamoun has maintained his “neutral” rating on Air Canada and his C$9 price target. He said:
Going forward, our ratings, price target and financial estimates for ACE Aviation should no longer be relied upon.
After selling off its remaining stakes in its regional carrier Jazz and its frequent flyer program Aeroplan last month, ACE holds a 75% stake in Air Canada and a 23% interest in its maintenance unit, ACTS.