Give air freight company Cargojet (TSE:CJT) credit; it is looking for the silver lining in every dark cloud. And the clouds were looking rather dark indeed in some cases, with potential new tariffs hitting or about to hit. But Cargojet sees opportunity in tariffs, and is working accordingly. Investors were less optimistic, though, and shares slumped over 4.5% in Tuesday morning’s trading.
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Cargojet is one of a handful of companies so far that actually sees opportunity in the tariffs, reports note, because such a move would make new supply routes a more attractive prospect. Cargojet co-CEO Pauline Dhillon noted that a shipper looking to save money on freight could bypass the United States altogether, sending shipments directly into Canada.
Freighter aircraft could do that job readily, and make Cargojet more attractive. Throw in the fact that Cargojet also offers a charter service, and its potential value to product shippers only increases.
Earnings Prove the Point
Meanwhile, Cargojet also released its earnings report, and the numbers suggest that it is doing pretty well indeed. In fact, the latest numbers featured a first for the company: $1 billion in annual revenue with the year 2024. Its revenue for the quarter, meanwhile, came out ot $293.2 million, up nearly a third from the fourth quarter of 2023, which brought in $221.9 million. Net earnings, meanwhile, came in at $71.2 million, up from a loss of $34.9 million in 2023’s third quarter.
A record-breaking year generally comes with reasons why it happened, Cargojet cites its improvements in operations, a business model that allows the company to roll with changes, and “strong peak season performance.”
Is Cargojet Stock a Good Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on TSE:CJT stock based on five Buys assigned in the past three months, as indicated by the graphic below. After a 10.51% loss in its share price over the past year, the average CJT price target of C$170.40 per share implies 63.55% upside potential.
