Morgan Stanley analyst Qianlei Fan has maintained their neutral stance on CPCAF stock, giving a Hold rating on August 13.
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Qianlei Fan’s rating is based on a combination of factors that reflect both positive and cautious elements in Cathay Pacific Airways’ performance. The airline experienced a significant year-over-year increase in passenger kilometers and available seat kilometers, indicating a strong recovery in travel demand to near pre-pandemic levels. However, the passenger load factor remained relatively flat, suggesting that while demand is robust, it has not yet fully returned to 2019 levels.
Additionally, while Cathay’s cargo operations showed healthy growth in tonnage and freight ton kilometers, the cargo load factor slightly decreased, and the average outbound air freight rate from Hong Kong declined. This mixed performance in both passenger and cargo sectors, coupled with macroeconomic uncertainties, supports a Hold rating as the company navigates these challenges while maintaining a cautious outlook for future demand.
In another report released on August 13, DBS also downgraded the stock to a Hold with a HK$11.00 price target.