Cathay Pacific Airways (293) Earnings Soar: September Passenger Traffic Up 17.8%

Cathay Pacific Airways on Smartkarma

Analyst coverage of Cathay Pacific Airways on Smartkarma reflects positive sentiment and encouraging outlooks. Mohshin Aziz‘s research reports highlight the airline’s 1HFY24 performance meeting expectations, with a respectable net profit decline of -15% YoY. Maintaining a BUY rating, Aziz sets a target price of HK$9.90, implying a 26% UPSIDE. Additionally, plans for buying back preference shares indicate a value buy opportunity with healthy operational performance, particularly in the UK and North American markets.

On the other hand, Osbert Tang, CFA, emphasizes the positive developments for Cathay Pacific, such as increased transfer traffic due to more countries gaining visa-free access to China. Tang notes the airline’s recovery trajectory, with passenger traffic rising 37.5% in 5M24 and capacity returning to pre-pandemic levels. With a forward-looking perspective, Tang highlights the potential benefits for Cathay Pacific as international travel restrictions ease and the company’s valuation remains attractive with a P/B ratio of 0.8x.

A look at Cathay Pacific Airways Smart Scores

Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma

Based on the Smartkarma Smart Scores, Cathay Pacific Airways Limited shows a positive long-term outlook. With a strong Growth score of 5, the company is expected to expand steadily in the coming years, indicating potential for increased market share and profitability. Additionally, the Dividend score of 4 suggests that investors may benefit from consistent dividend payouts, making it an attractive option for those seeking income from their investments. The Momentum score of 4 further indicates that the company is on a positive trajectory.

However, despite these strengths, Cathay Pacific Airways Limited’s overall outlook is slightly tempered by its Resilience score of 2, indicating that it may face some challenges in navigating industry disruptions or economic downturns. Nevertheless, with a Value score of 3, the company is still considered to have a reasonable valuation, presenting a potential opportunity for investors looking for a balanced investment in the airline industry.

Summary: Cathay Pacific Airways Limited operates scheduled airline services and provides related services such as airline catering, aircraft handling, and engineering. The company’s Smartkarma Smart Scores reflect a generally positive outlook, particularly in terms of Growth, Dividend, and Momentum, albeit with some resilience challenges.

Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
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