Cargojet Inc T.CJT

Alternate Symbol(s): CGJTF | 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 Oct 03, 2024 11:17am

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Post# 36251718

RBC

October 3, 2024

Cargotjet Inc.

Connecting the Dots: Continued strength in airfreight rates out of China a positive for Cargojet

TSX: CJT | CAD 135.52 | Outperform | Price Target CAD 189.00

Sentiment: Positive

Our view. Airfreight rates out of Hong Kong remain elevated through Sept (+22% y/y) on increased eCommerce demand for goods from China, as outlined in Exhibit 1. We see this as a positive for Cargojet and therefore flag potential upside related to the company’s recent charter agreement with Great Vision HK Express. Furthermore, Amazon announced today it is hiring 9,000 employees across its Canadian operations network in full-time, part-time and seasonal roles, in addition to opening five new AMZL delivery stations in British Columbia, Alberta, and Ontario, which we also view as a positive indication the demand outlook is solid into Q4. The key here is that as eCommerce players look to ramp air shipments from China into North America, the growth opportunity for CJT is meaningful, especially within the context of elevated pricing in these lanes seen the past few months. We reiterate (with high conviction) our Outperform rating.