Cargojet Inc T.CJT

Alternate Symbol(s): CGJTF | T.CJT.DB.F | T.CJT.DB.E

Industrials

Cargojet Inc. is a Canada-based provider of time sensitive air cargo services to all major cities across North America, providing dedicated, aircraft, crew, maintenance and insurance (ACMI) and international charter services. The Company's main air cargo business is comprised of operating a domestic network air cargo co-load network between sixteen major Canadian cities and providing dedicated aircraft to customers on an ACMI basis, operating between points in Canada, the United States, Mexico, South America, Asia and Europe. It also operates scheduled and ad hoc international routes for multiple cargo customers between United States and Bermuda, between Canada, United Kingdom and Germany; between Canada and Asia; and between Canada and Mexico. Its charter services include Go Now, dangerous goods, heavy & oversized cargo, humanitarian and relief, remote destinations, automotive, and oil and gas. The Company operates its network with its own cargo fleet of approximately 41 aircraft.

TSX:CJT - Post by User

Cargojet Inc

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Post by retiredcfon May 02, 2022 9:09am

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Post# 34647028

RBC Reaction

May 2, 2022

Outperform

TSX: CJT; CAD 150.09

Price Target CAD 302.00

All values in CAD unless otherwise noted.
Priced as of prior trading day's market close, EST (unless otherwise noted).

Cargojet Inc.

CJT increases dividend by 10% and announces Normal Course Issuer Bid
Sentiment: Positive

Our take. The dividend increase and (most notably) its first ever NCIB, represents in our view mgmt's move to proactively capitalize on a share valuation that is well below appropriate levels - while returning cash to shareholders from the 10% dividend increase. While the NCIB is small, it may provide a symbolic backstop to valuation, in anticipation of what we expect will be a significant future FCF inflection once the aircraft program is complete.

What happened? CJT today announced that the Toronto Stock Exchange has accepted its notice of intention to proceed with a NCIB for a portion of its common voting shares and variable voting shares. Cargojet is authorized to purchase up to $15.5MM of shares under its credit facility which we note represents roughly 100,000 shares at today's prices or approximately 0.6% of its shares outstanding. Cargojet also announced today that its Board of Directors has approved a 10% increase to its quarterly dividend. The next quarterly dividend of $0.2860 per share will be declared in the normal course in June 2022.

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