Asia FX muted despite Fed cut bets; Japanese yen slides after PM Ishiba resigns
Investing.com - Raymond James has initiated coverage on Cargojet Inc. (TSX:CJT) with an Outperform rating and a price target of C$132.00, citing the company’s dominant position in Canada’s air cargo market.
The freight carrier controls approximately 90% of Canada’s domestic market share, operating a fleet of 43 aircraft connecting 16 Canadian cities and transporting more than 25 million pounds of cargo weekly, according to Raymond James. The firm highlighted Cargojet’s "deep and durable" structural advantages underpinning its competitive position.
While North American air cargo demand has experienced volatility this year, Raymond James notes that Canadian demand has remained "remarkably resilient," reflected in Cargojet’s robust 15% domestic revenue growth through the first half of 2025. This contrasts with more volatile U.S. demand, which saw North American industry volumes drop 5.8% year-over-year in May and 8.3% in June before posting a modest 0.7% recovery in July.
Raymond James expects Cargojet to benefit from long-term secular tailwinds across its business segments, including its domestic network operations, ACMI (Aircraft, Crew, Maintenance, and Insurance) services with key customers like DHL and Amazon, and charter business with new customers such as HK Express.
The investment firm believes the recent 24.9% pullback in Cargojet shares over the past year (compared to the TSX Composite’s 22.6% gain) represents "an attractive entry-point for long-term investors," with the stock trading at 6.8 times estimated 2026 EBITDA, a discount to both pre-COVID and post-COVID averages.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.