[ET Net News Agency, 1 April 2021] Daiwa raised its target price for China Southern
Airlines (01055) (CSA) to HK$5.7 from HK$4.8 and maintained its "hold" rating.
The research house said despite a promising outlook for the domestic market, management
of CSA expects some risks in 2021, including higher domestic fare pressure from more
wide-body aircraft being used in the local market, higher fuel prices, forex loss, and no
CAAC preferential offerings. As such, the research house believes 2021 will be a year of
recovery with balanced risks and opportunities and it expects CSA to post a narrower net
loss YoY.