Improved Liquidity for Cathay Pacific to Support Investor Participation

Dow Jones09-07 17:54

0954 GMT - Cathay Pacific's share liquidity has picked up in recent months, supporting broader investor participation, HSBC analysts say in a note. Shareholder-level activities such as buying back shares held by Qatar Airways, have helped realign Cathay's shareholding, expanding its share free float to 31% from 25% previously. This has helped to alleviate the historical overhang from Cathay's concentrated ownership structure, they add. The recent share-price pullback is largely due to renewed concerns over higher fuel prices rather than a deteriorating underlying passenger or cargo outlook, HSBC says. Passenger outlook remains supported by resilient premium travel demand, and Cathay should continue capturing cargo tailwinds from high demand for AI and tech-related goods. HSBC retains a buy rating with a target price of HK$16.50. Shares closed at HK$14.51.

 

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