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HSBC Global Research upgrades Cathay Pacific Airways to “buy”
February 8th 2022
Cathay Pacific Airways is forecast to return to profitability in 2022 and achieve double-digit return on equity the following year as a result of improving international revenue passenger kilometres (RPK), HSBC Global Research said in a research note dated February 7. Read More » "While it's difficult to pinpoint the timing of the reopening of international travel, there is little doubt about the trajectory, especially from next year, as restrictions will have been in place for three years in a row, fuelling very strong pent-up demand," the research note said. "Therefore, we firmly believe yields for both cargo and passengers compared with pre-COVID-19 levels will be significantly higher." HSBC has upgraded the Hong Kong-based carrier to buy, from hold previously, with a target price of HK$8.00 (US$1.03), from HK$7.00 previously. The airline’s shares closed Monday's trade on the Stock Exchange of Hong Kong at HK$6.70.
