
TSE:CJT
This summary was created by AI, based on 11 opinions in the last 12 months.
Cargojet Inc. (CJT) has garnered mixed opinions among experts, presenting a complex outlook. While some analysts highlight its strong market position, particularly in air cargo and its dominance in Canada, concerns around tariffs and weakened demand dampen overall sentiment. The company has faced challenges post-COVID, leading to a drop in share prices, but some believe its current valuation presents a buying opportunity as fundamentals remain solid. Additionally, the lack of competition in Canada bolsters the company's long-term potential, despite short-term headwinds. Overall, as trade normalizes, many analysts expect a reacceleration in growth potential, marking CJT as an intriguing option for investors.
He likes the company. However, if you stumble at these valuations the market will punish you. When they reported earnings this week it was impacted negatively. As there is a move towards one-day shipping, they are well positioned. There is no threat of Amazon coming to Canada to take them on directly -- they actually bought into the company.
A play on e-commerce. It is not cheap, but he likes that Amazon is a minority shareholder and they hold a contract with Canada Post offering same day delivery. They have hired more pilots, which hurt their financial position last year, but they are seeing revenues exploding now. Yield 0.81% (Analysts’ price target is $117.50)
He meets the managers every six months. He likes them and would buy them. A breakthrough is how they increase their utilization rates on existing fleets by getting new customers, contracts and routes. That's smart. They've done an excellent job using their existing planes; new planes are very expensive and cuts into free cash flow. They will benefit from their Amazon deal over time, delivering Amazon product.
They recently did a deal with AMZN-Q. This is overnight eCommerce packages to 14 different cities in Canada. This is the cleanest way to play eCommerce in Canada. Margins are close to 30% and they did a good job of expanding their fleet. AMZN-Q will be a shareholder. (Analysts’ price target is $114.91)
(A Top Pick Sep 30/19, Up 88%) The increased volume from e-commerce has been significant. Air Canada flying less also offers further opportunities for Cargojet. To deliver vaccines to other countries also will increase demand. There is further upside for the company.