＜Research＞BofAS Raises CATHAY PAC AIR (00293.HK) TP to $12, Rates Buy

　　BofA Securities noted in a report that CATHAY PAC AIR (00293.HK) +0.030 (+0.375%) Short selling $14.33M; Ratio 10.191% 's 1H24 passenger yields are normalising in line with previous business guidance. This is coupled with strong advance bookings for CATHAY's passenger flights, driven by seasonal factors, student traffic and steady business demand.

　　BofAS expected CATHAY to maintain a return on shareholders' equity of 11-14% between FY24 and FY26 through improved cost per unit, bottoming out of cargo yields, and normalising contributions from AIR CHINA (00753.HK) +0.040 (+1.102%) Short selling $4.56M; Ratio 9.428% . The broker is watching catalysts for the group, particularly the seasonal peak in 2H24, which is expected to drive earnings and potentially surprising dividends, with CATHAY currently trading at a 6.4% yield for FY24.

　　Related NewsCiti Lowers TPs on 3 Major CN Airlines; Industry Top Pick AIR CHINA (00753.HK)

　　Separately, BofAS lowered its FY24 EPS forecast for CATHAY by 5% to reflect the weaker contribution from AIR CHINA. However, the broker also raised its FY25 to FY26 EPS forecasts for CATHAY by 15% on the back of an improved outlook for the cargo cycle. BofAS raised CATHAY's target price from $11.5 to $12 and reiterated its Buy rating.

　　(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2024-06-27 16:25.)

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