Cathay Pacific Airways (293) Earnings Surge: August Passenger Traffic Up 15.9%

Cathay Pacific Airways on Smartkarma

Analyst coverage on Cathay Pacific Airways by independent investment researchers on Smartkarma paints a positive outlook. Mohshin Aziz maintains a Buy rating with a target price of HK$9.90, highlighting the airline’s respectable results and attractive valuations. The 1HFY24 performance, though slower, met expectations with a 15% YoY decline in net profit. Additionally, Cathay plans to buyback preference shares, further enhancing its value proposition.

Osbert Tang, CFA, also provides a bullish perspective, pointing out Cathay Pacific’s potential benefits from increased transfer traffic as more countries gain visa-free access to China. Despite being a laggard in the industry, Cathay’s recovery is on track, evident from the rise in passenger traffic and the gradual return to pre-pandemic capacity levels. The airline’s current P/B valuation and ROE forecast suggest room for future growth and a positive trajectory.

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 is poised for a positive long-term outlook. With a strong focus on growth, evidenced by a score of 5 in that category, the company is strategizing for expansion and development. Additionally, a momentum score of 4 suggests that Cathay Pacific Airways is building up steam in the market, indicating a potential upward trajectory. Although the resilience score is slightly lower at 2, the overall outlook remains promising. With moderate scores in value and dividend factors at 3 each, Cathay Pacific Airways demonstrates stability and a solid footing in the industry.

Cathay Pacific Airways Limited, primarily known for its scheduled airline services, is also involved in providing various associated services like airline catering, aircraft handling, and engineering. The company’s strategic focus on growth and recent positive momentum in the market position it well for future opportunities. By scoring high on growth and demonstrating stability in value and dividend categories, Cathay Pacific Airways shows potential for long-term success and sustained performance in the aviation sector.

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.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
Have feedback on this article? Concerned about the content? Get in touch with us directly.

💡 Before it’s here, it’s on Smartkarma