The Globe and Mail reports in its Friday, June 6, edition that Scotia Capital analyst Konrad Gupta has reaffirmed his "sector underperform" recommendation for Transat AT. The Globe's David Leeder writes in the Eye On Equities column that Mr. Gupta gave his share target a 50-cent boost to $1.75, matching the consensus. Mr. Gupta says in a note: "[We maintain our rating] to reflect equity accretion from government debt restructuring, partially offset by our reduced assumptions for forward bookings due to macro uncertainties. The debt restructuring transaction, pending the finalization of definitive agreements, will effectively cut Transat's pro forma net debt by $380-million while reducing annualized interest costs by more than $40-million for the first five years. ... However, we think equity dilution risk will increase given the issuance of preferred shares that will be convertible into common shares while the expiry of equity warrants will also be extended to 2035. That said, the net outcome is not as concerning as we had feared. ... Still, we remain cautious on Transat due to its elevated pro forma leverage ratio at sub-seven times, which creates high risk for equity investors especially during these uncertain times."