RBC Dominion Securities analyst Walter Spracklin thinks there is money to be made on CargoJet (CargoJet Stock Quote, Chart, News, Analysts, Financials TSX:CJT).
As reported by the Globe and Mail, Spracklin January 17 maintained his “Outperform” rating but trimmed his price target on CJT stock from $187.00 to $184.00.
In a press release January 15, CJT said no surprises would come from its Q4 results.
“The holiday season performance for 2023 was in line with our expectations,” said Jamie Porteous, co-chief executive officer. “With our optimized fleet strategy and cost-efficiencies gained throughout 2023, we are well positioned to deliver strong cash flows and shareholder value,” commented Pauline Dhillon, co-chief executive officer added.
Spracklin says the company’s business acumen has things looking up.
“Cargojet announced a further refining of its growth strategy,” he wrote. “Our view is that this will result in a major (and immediate) inflection to FCF and (more importantly) it represents what we believe is a substantial positive shift in investor sentiment away from the (exited) international strategy and refocus on domestic Canada overnight. Shareholder returns are immediate and have in fact already begun (dividend hike and substantial share buyback). We are calling for a near-term and significant valuation rerate, with our conviction evidenced in our 50-per-cent implied return to our price target. Reiterate Cargojet as our top idea across our coverage universe.”
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