ATB ATB Capital Markets’ Chris Murray lowered his Cargojet Inc. target to $185, below the $197 average, from $200 with an “outperform” rating.
“Management was constructive on the Company’s longer-term outlook but highlighted some softness in volumes on its domestic network in December, with more normal trends returning in January,” he said. “Management acknowledged that macro conditions have weakened since its investor day, though we see the contracted nature of its volumes, ability to optimize capacity, and domestic franchise supporting activity levels and margins in 2023 and beyond. We view CJT as an intriguing GARP opportunity with an attractive risk/reward setup at current valuations.”