Bitcoin price today: gains to $120k, near record high on U.S. regulatory cheer
On Tuesday, BMO Capital Markets adjusted its valuation of Cargojet Inc. (TSX:CJT:CN) (OTC: CGGJF), reducing the price target to Cdn$95.00 from the previous Cdn$120.00. Despite the adjustment, the firm maintained a Market Perform rating on the stock. The revision reflects a broader trend within the transportation sector, anticipating a subdued demand for freight services in the current year.
The analyst from BMO Capital cited increasing macroeconomic risks and evolving trade policies as reasons for the more conservative outlook on Cargojet. With a less clear view of future demand, the firm believes that a cautious stance is appropriate at this time. The revised price target and sustained Market Perform rating indicate BMO Capital’s continued expectation of average performance from the company in the market.
BMO Capital also reported a reduction in its forecast for Cargojet’s core revenues, which includes Domestic, ACMI, and Charter services, by 3.4% for 2025. This projection is largely due to an expected decrease in block hours within the ACMI segment. However, the firm anticipates that this could be partially mitigated by an increase in ad-hoc charter revenues.
Historically, Cargojet has managed to keep its fleet highly utilized even when demand for its core services wanes by focusing on the ad-hoc markets. Given the current environment of heightened trade uncertainty and shippers’ efforts to reposition inventories, BMO Capital suggests that the ad-hoc charter market might offer Cargojet some revenue opportunities in the short term.
In summary, the market’s changing conditions have prompted BMO Capital to reassess Cargojet’s financial outlook, leading to a lowered price target while maintaining a neutral stance on the stock’s performance. The analyst’s commentary underlines the potential for Cargojet to leverage its flexibility in service offerings to navigate through uncertain times.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.