01:17 PM EDT, 07/08/2024 (MT Newswires) -- Cargojet ( CGJTF ) is the best-positioned stock from the trucking and diversified industrials sector, going into the second quarter, writes RBC Capital, The company reports its results on August 13 after market close.

RBC's second quarter EBITDA estimate increases $2 million, to $79 million) on the back of the three-year agreement to provide scheduled charter services for Great Vision HK Express, which capitalizes on increased eCommerce demand out of China.

"We expect this deal, which utilizes current capacity, to be a meaningful driver of operating leverage during the remainder of the year, in addition to a more general potential inflection in eCommerce volumes flagged by FedEx last month," RBC writes.

2025 estimate increases to $375 million (from $361 million), as the analysts see "increasing eCommerce penetration and better margins driven by improving capacity utilization."

RBC expects second quarter focus to be on volume trends.

Maintain Outperform, target raised to $189 (from $182).

Price: 137.58, Change: -0.33, Percent Change: -0.24