- Cathay Pacific reported a 3% increase in cargo and mail in February.
- The total cargo and mail handled by the airline amounted to 107,039 tons.
- The cargo and mail load factor stood at 59.2%.
- There was a significant increase of 61.6% in passenger traffic.
- The airline transported 1.80 million passengers during the month.
- The passenger load factor was recorded at 82.4%.
- 12 buys, 1 hold, and 0 sells were reported for Cathay Pacific’s stock.
Cathay Pacific Airways on Smartkarma
Smartkarma, an independent investment research network, has been buzzing with analyst coverage of Cathay Pacific Airways. The top independent analysts on the platform have been publishing their research on the company, providing valuable insights for investors.
One such analyst, Neil Glynn, recently published a report on Cathay Pacific’s rising inflationary pressure and how it is expediting the company’s earnings normalization process. In the report, Glynn highlights the creeping cost pressure at Cathay and revisits the airline’s margin generation problems from the last cycle, which require structural solutions. He also cuts his 2024 EBITDAR forecast by 10%, leaving him well below consensus.
On the other hand, Mohshin Aziz, another analyst on Smartkarma, has a bullish outlook on Cathay Pacific. In his report, he praises the company for exceeding profit forecasts for FY23 and announcing a surprise dividend, signaling a strong market performance and pandemic recovery. Aziz maintains a “BUY” rating on Cathay and has a target price of HK$9.90, implying a 10% upside.
Another report by Neil Glynn dives deep into the root causes of Cathay’s historical margin challenges. He compares the company’s margin generation to 10 global airline peers and highlights weak pricing power and insufficient cost efficiencies as the key problems. Glynn’s analysis was prompted by reports that Air China is considering increasing its stake in Cathay.
Osbert Tang, CFA, also published a report on Cathay Pacific, highlighting the company’s solid traffic and improved yield as factors that could lead to further growth in FY24. He believes there is room for the company to exceed market expectations in its FY23 results and expects its associate, Air China, to benefit from pent-up demand and travel recovery.
In another report, Neil Glynn analyzes Cathay Pacific’s 2024 earnings prospects and believes that the company can outperform expectations. He notes strong pax unit revenue momentum and cost control, similar to its North Asian peers, as positive factors for the company’s 2024 prospects. Glynn’s 2024 EBITDAR forecast is 5% ahead of consensus, and his net income forecast is 11% ahead.
A look at Cathay Pacific Airways Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 1 | |
| Growth | 5 | |
| Resilience | 2 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.2 |
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
Cathay Pacific Airways Limited, a company that provides airline services, has recently been given a Smartkarma Smart Score of 3 out of 5 for Value, 1 out of 5 for Dividend, 5 out of 5 for Growth, 2 out of 5 for Resilience, and 5 out of 5 for Momentum. This indicates a positive long-term outlook for the company, as it scores well in areas of growth and momentum. The higher the score, the better the company is performing in that particular factor.
Despite a low score in Dividend, Cathay Pacific Airways‘ strong performance in Growth and Momentum suggests potential for future growth and profitability. The company’s services, including airline catering, aircraft handling, and engineering, also contribute to its overall resilience. With a solid score of 3 for Value, Cathay Pacific Airways may be seen as a good investment opportunity for those looking for long-term potential in the airline industry.
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.
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