Cargojet: The Market Is Pricing In Distress, The Business Is Not

Cargojet stock remains a "Buy" based on revenue growth, resilient EBITDA, and undervalued EV/EBITDA with 40% upside. Click for more on CGJTF stock.

Summary - Cargojet remains a critical enabler for Canadian express shipping, with its business model providing downside protection amid macro and geopolitical headwinds. - Q2 revenue is expected to grow 7.9% to CAD $257 million, but EPS is forecast to decline 23% due to non-operational factors and cost pass-throughs. - Despite margin pressure from ACMI block hour utilization and trade shifts, EBITDA remains resilient, and free cash flow is projected to turn positive from 2026.

- With the stock trading at 6.8x–8.2x EV/EBITDA and a 40% upside to the $85.68 price target, I maintain a "Buy" rating, citing undervaluation versus peers. - Looking for more investing ideas like this one?

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