TSX:CJT - Post Discussion
Post by
retiredcf on Nov 15, 2022 8:42am
RBC Looking for a Double
Cargojet Inc.
CJT and UPS contract renewal secures CJT's leadership position in Domestic Overnight market
TSX: CJT | CAD 140.12 | Outperform | Price Target CAD 272.00
Sentiment: Positive
Our take. CJT today announced that it has renewed and extended its agreement with UPS - the current agreement was due to expire in 2025 and the new agreement is extended to December 31, 2030. We view the contract renewal as a key positive as it further secures the company's positioning in the domestic overnight air cargo market (95% market share) as well as validates CJT’s strong service offering reflecting customer willingness to lock in with the company long-term. Today’s announcement in our view further reduces new entrant risk and supports our view that demand for CJT’s service offering remains strong. CJT remains our top idea in transportation.
What happened? Cargojet announced today it has renewed and extended its Air Cargo Services Agreement with UPS Canada for an additional five-year Term. The current agreement was due to expire on July 1, 2025 and the new agreement is extended to December 31, 2030.
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