Morgan Stanley: Raises the target price for TRAVELSKY TECH to HKD 10.2, rating "Reduce"

Morgan Stanley released a research report stating that it has lowered its EBITDA forecast for China Civil Aviation Information Network from this year to 2027 by 6% to 7%, based on slower-than-expected revenue recognition in the first half of the year for the SI business, lower processing volumes from foreign airlines, and reduced depreciation and amortization expenses. The bank roughly maintains its net profit forecast for the company this year, based on more credit impairment reversals and lower depreciation and amortization. The net profit forecasts for the company for next year and the year after have been lowered by 1% and 2%, respectively. The bank raised its target price for China Civil Aviation Information Network from HKD 9.9 to HKD 10.2, changing its assumption on the RMB exchange rate from considering RMB appreciation to an appreciation of 1.5% against the HKD. The bank continues to rate the stock as "Underweight."