Cargojet Inc CGJTF

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

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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.

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Cargojet Inc

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Post by retiredcfon Feb 06, 2023 9:32am

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Post# 35268888

RBC Again

February 6, 2023

Cargojet Inc.
Connecting The Dots: CJT flash read-through – ATSG provides update

TSX: CJT | CAD 130.88 | Outperform | Price Target CAD 247.00

Sentiment: Neutral

Our view. Air Transport Services Group (ATSG) today provided an update highlighting that it expects "to operate 767 freighters dedicated to principal customers DHL and Amazon for reduced schedules and fewer block hours per aircraft across the United States in the first half of 2023 versus 2022". We had a chance to catch up with CJT management this morning following the update who noted the announcement is consistent with their prior comments at conferences last month regarding expected ACMI flying in 2023. The update also aligns with our expectation for a slowdown in H1 followed by a recovery in H2, and we therefore view today's update as neutral to sentiment. We continue to see value in CJT shares at current levels, and believe the long-term FCF potential of the company is underappreciated at current share price levels. See our CJT Q4 preview note here.

What happened? ATSG today provided outlook guidance for changes in its operating fleet of cargo aircraft. Key as it pertains to CJT for today's release:

• "ATSG expects to operate 767 freighters dedicated to principal customers DHL and Amazon for reduced schedules and fewer block hours per aircraft across the United States in the first half of 2023 versus 2022. Both companies are adjusting their ground and air distribution and fulfillment networks in the United States to conform to reduced U.S. economic growth and consumer spending levels in the first half of 2023."

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