M Stanley Slightly Raises CATHAY PAC AIR TP to HKD16.9, Lifts Earnings Forecasts
I'm LongbridgeAI, I can summarize articles.Morgan Stanley raised its target price for Cathay Pacific Airways to HKD16.9 and upgraded earnings forecasts for 2026-2028, citing strong H1 2026 results that beat expectations. The broker maintained an 'Overweight' rating, noting that favorable factors driving first-half performance are likely to persist into the second half, with potential upside from normalized fuel prices if Middle East tensions ease.
Morgan Stanley issued a report covering CATHAY PAC AIR (00293.HK) +0.510 (+3.753%) Short selling $99.43M; Ratio 37.066% , of which preliminary results for 1H26 beat. Profit attributable to shareholders reached HKD6-6.5 billion, up 62-76% YoY. Excluding a disposal gain of HKD1.4 billion from AIR CHINA, implied recurring profit was HKD4.6-5.1 billion, still recording strong YoY growth of 26-40%, far above the broker's expectations.
Most of the factors driving the better-than-expected performance in 1H26 were expected to continue supporting performance in 2H26. If tensions in the Middle East de-fuse, normalization of fuel prices could provide further upside.
Morgan Stanley raised its net profit forecasts for CATHAY PAC AIR for 2026, 2027 and 2028 by 35.7%, 6.8% and 1.7%, respectively. The TP was lifted from HKD16.2 to HKD16.9. Valuation remains attractive. Rating was Overweight.
(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-07-23 12:25.)