The central bank is likely to cut its bond-buying program again this year, possibly as soon as July, as provinces ease curbs to contain the coronavirus pandemic and inflation pressures build, analysts said.
Investors have worried that the heating up of the U.S. economy could raise the outlook for inflation, prompting the Federal Reserve to tighten monetary policy.
"Our target price declines due to the negative impact of greater short-term cash-burn and the impact of the dilution from the share and warrant issue on the price to equity component of our target," James added.
The Canadian government on Monday agreed to buy C$500 million worth of shares in the airline at C$23.1793 each.
The price of oil, one of Canada's major exports, plunged as concerns over new pandemic curbs and slow vaccine rollouts in Europe added to oversupply uneasiness.
World stocks scaled new peaks after lawmakers and aides said that Congressional negotiators were closing in on a $900 billion COVID-19 aid bill in the United States.