CLSA Upgrades CATHAY PAC AIR to Outperform, Raises TP to HKD16.4
I'm LongbridgeAI, I can summarize articles.CLSA upgraded Cathay Pacific Airways to Outperform, raising its target price from HKD13.5 to HKD16.4. The broker cited optimism regarding cargo business performance and resilient passenger yields. Consequently, CLSA increased net profit forecasts for 2026 and 2027 by 54% and 37%, respectively, attributing this to updated yield assumptions and proposed disposal gains from Air China.
CLSA said in a research report that the recent profit alert for 1H26 released by CATHAY PAC AIR (00293.HK) +0.020 (+0.142%) Short selling $190.37M; Ratio 41.370% has made the broker more optimistic about the performance of its cargo business, while demand for its passenger business remains solid with resilient yields. Taking into account updated yield assumptions and proposed disposal gains from AIR CHINA (00753.HK) -0.100 (-2.404%) Short selling $15.93M; Ratio 25.039% in 1H26, the broker raised its net profit forecasts for CATHAY PAC AIR (00293.HK) +0.020 (+0.142%) Short selling $190.37M; Ratio 41.370% by 54% and 37% for 2026 and 2027, respectively.
The broker expects profit attributable to shareholders of CATHAY PAC AIR (00293.HK) +0.020 (+0.142%) Short selling $190.37M; Ratio 41.370% to reach HKD13.5 billion in 2026 and HKD14.8 billion in 2027. It also forecast ROE to rise to 23.9% in 2027, marking the highest level since 2010.
CLSA raised its target price-to-book multiple for CATHAY PAC AIR (00293.HK) +0.020 (+0.142%) Short selling $190.37M; Ratio 41.370% from 1.41x to 1.61x, lifting its TP from HKD13.5 to HKD16.4, while upgrading the rating from Hold to Outperform. (ad/)(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-07-23 16:25.)