The analyst rating for CATHAY PAC AIR was influenced by the company's management's expectation that its 2025 consolidated financial performance will exceed that of 2024. UBS viewed this guidance as better than expected, leading them to believe that the company's earnings for FY2025 will be higher than anticipated. This positive outlook suggests that the company's dividend per share (DPS) may also surpass estimates, as the company typically distributes about half of its profit (excluding non-cash special items) as dividends. Consequently, UBS anticipates a favorable reaction in CATHAY PAC AIR's share price due to the profit guidance exceeding consensus, which led them to reaffirm the stock as a top pick in the APAC airline sector, assigning a target price of $14 and a rating of Buy.
