Is Cargojet (TSX:CJT) a buy right now?

Paradigm Capital analyst Razi Hasan says Cargojet (Cargojet Stock Quote, Chart, News, Analysts, Financials TSX:CJT) has managed well through a weak international freight market, with its domestic network providing stability.

In a July 24 preview, Hasan maintained his “Buy” rating and $110.00 target on Cargojet.

Cargojet is scheduled to report Q2 results after market close on Aug. 10, with a conference call on Aug. 11.

Hasan said Cargojet shares have been volatile in 2026, but consecutive better-than-expected quarters have been encouraging. He expects a more stable operating backdrop in the second half of the year.

Cargojet’s domestic network, which represents about half of operating revenue, remains the anchor of the business. Hasan said the segment continues to benefit from the company’s market leadership in Canada and solid business-to-consumer freight volumes.

While domestic revenue growth slowed in Q1, he said long-term take-or-pay contracts provide stability. He expects 2026 domestic revenue growth to track broadly in line with GDP.

Internationally, Cargojet continues to face pressure from weaker shipping volumes tied to tariff uncertainty. The company has been redeploying aircraft from longer routes to Asia and Europe toward shorter South American routes, reducing revenue because it is paid by block hours flown.

To offset that pressure, management has used unused aircraft for charter work. Hasan said charter remains an important tool for reducing volatility, with new opportunities in Venezuela and continued operations to Liege, Belgium.

“While we are encouraged by the sequentially strong results, we remain cautious on the short-term outlook owing to the persistent uncertainty surrounding international freight volumes,” Hasan said.

The analyst expects Cargojet to generate Adjusted EBITDA of $332.5-million on revenue of $1.04-billion in fiscal 2026, improving to Adjusted EBITDA of $344.9-million on revenue of $1.07-billion in fiscal 2027.

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