[ET Net News Agency, 11 June 2020] Huatai Research lowered its target price for Cathay
Pacific (CX)(00293) to HK$13.2 from HK$15.2 and maintained its "buy" rating.
The research house thinks CX's business will remain sluggish. Considering the lingering
uncertainties about the pandemic overseas, Huatai cut its net profit estimates, from
HK$1,007mn to a net loss of HK$7,438mn for 2020, and for 2021/2022 by 39/20% to
HK$1,995/3,723mn.
Huatai believes the recapitalization plan will help CX to mitigate the current crisis by
strengthening its balance sheet. It remains confident of the long-term value of its global
airline network. (KL)