Analyst Qianlei Fan of Morgan Stanley maintained a Hold rating on Cathay Pacific Airways (CPCAF – Research Report), retaining the price target of HK$9.10.
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Qianlei Fan has given his Hold rating due to a combination of factors influencing Cathay Pacific Airways’ financial performance. Despite the company’s FY24 net profit surpassing both consensus and Morgan Stanley’s estimates, the revenue from passenger services showed only a modest increase, with a decline in passenger yield. This suggests that while the number of passengers increased, the revenue per passenger decreased, which could impact future profitability.
Additionally, while cargo revenue showed improvement with a positive yield, the overall operating profit growth was moderate. The company’s operating cash flow decreased compared to the previous year, and although the dividend payout ratio increased, indicating a higher yield, these factors combined suggest limited upside potential. Therefore, Qianlei Fan’s Hold rating reflects a cautious stance, balancing the positive financial outcomes with potential challenges in sustaining growth.
According to TipRanks, Fan is ranked #7953 out of 9347 analysts.