-- CIBC Capital Markets maintained its outperformer rating on the shares of Cargojet (CJT.TO) and raised its price target to C$125 from C$122 after the company reported its first-quarter financial results on Monday.
Cargojet "continues to demonstrate its ability to extract incremental value from its existing fleet through improved asset utilisation and flexible redeployment," it said. About 12 to 13 aircraft operated for DHL are now available up to three days per week "for incremental charter opportunities, materially improving aircraft and crew productivity while lowering idle time," the bank noted.
CIBC has seen the company "continue to benefit from healthy domestic demand environment while offsetting shorter-haul ACMI flying with charter opportunities."
"The air freight market continues to face macro turbulence, whether it is ongoing trade uncertainty, the spike in fuel prices, or the Middle East conflict," said analyst Kevin Chiang. "CJT's Q1 results and outlook continue to demonstrate that the company is navigating through these headwinds."
CIBC's 2026 and 2027 EBITDA forecast move to $341 million from $331 million expected earlier and to $355 million from $353 million, respectively, to reflect the company's revenue outlook and the current fuel price environment. Its EPS forecast moves lower as it adjusts its D&A expenses higher, the bank added.
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Price: $82.50, Change: $+4.80, Percent Change: +6.18%