UOB Kay Hian analyst Roy Chen maintained a Hold rating on Cathay Pacific Airways (CPCAF – Research Report) today and set a price target of HK$11.20.
Roy Chen has given his Hold rating due to a combination of factors influencing Cathay Pacific Airways’ financial performance. The company’s 2024 core net profit of HK$8.9 billion exceeded consensus estimates by 11.4% but fell slightly short of UOB Kay Hian’s projections. While passenger yields were better than expected in the second half of 2024, these gains were counterbalanced by increased staffing costs and weaker fuel efficiency.
Looking forward, Roy Chen anticipates that Cathay Pacific’s earnings in 2025 will remain relatively stable year-over-year. The expectation of subdued fuel prices may help offset the challenges posed by cargo headwinds stemming from US-China trade tensions. Given these mixed factors, Roy Chen maintains a Hold rating with a target price of HK$11.20.
In another report released today, J.P. Morgan also downgraded the stock to a Hold with a HK$11.00 price target.