Reaction to Cathay Pacific Earnings Looks Overdone -- Market Talk

Dow Jones08-08

0526 GMT - Cathay Pacific's 1H earnings aren't as weak as the market reaction suggests, Jefferies equity analyst Andrew Lee writes in a note. The carrier's shares closed 4% lower on Wednesday after it posted 1H earnings. Lee attributes the drop in 1H net profit mostly to a higher base a year earlier, when the result was flattered by a HK$1.9 billion one-off gain. Overall, more flights, seasonally strong cargo, and gains from Air China's recovery will drive 2H earnings higher, Lee says. Passenger short-haul yields have likely normalized due to competition, and long-haul yields could continue falling, but cargo and passenger yields are expected to remain above 2019 levels, Lee says. Jefferies keeps a buy rating and HK$9.80 target on the stock, which is 0.5% lower at HK$7.79 at the midday break. (kimberley.kao@wsj.com)

(END) Dow Jones Newswires

August 08, 2024 01:26 ET (05:26 GMT)

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Passenger short-haul yields have likely normalized due to competition, and long-haul yields could continue falling, but cargo and passenger yields are expected to remain above 2019 levels, Lee says. Jefferies keeps a buy rating and HK$9.80 target on the stock, which is 0.5% lower at HK$7.79 at the midday break. 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The carrier's shares closed 4% lower on Wednesday after it...</p>\n\n<a href=\"https://dowjonesnews.com/newdjn/logon.aspx?AL=N\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"CPCAY","symbol_name":"国泰航空ADR","start_time":0,"source_url":"https://dowjonesnews.com/newdjn/logon.aspx?AL=N","article_id":"2457330896","we_media_id":"106","thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2457330896","pubTimestamp":1723094760,"columns":[],"sourceInfo":null,"weMediaInfo":{"media_name":"Dow Jones","introduction":"Dow Jones publishes the world’s most trusted business news and financial information in a variety of media.","home_visible":0,"id":"106","head_image":"https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99"},"summary":"0526 GMT - Cathay Pacific's 1H earnings aren't as weak as the market reaction suggests, Jefferies equity analyst Andrew Lee writes in a note. 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