CATHAY PAC AIR Shrinks ~7% Post-results as 1H25 NP Hikes 1.1% w/ Flattish Div.

Written by Emily J. Thompson, Senior Investment Analyst

00293-1.67%

Source: aastocks

Updated: Aug 06 2025

0mins

Source: aastocks

Stock Performance: Cathay Pacific Air's stock fell by 6.99% to $11.17, with significant short selling activity and a trading volume of over 7 million shares.
Financial Results and Aircraft Acquisition: The airline reported a 1.1% increase in profit attributable to shareholders at $3.651 billion, declared an interim dividend of 20 cents, and announced plans to acquire 14 Boeing 777-9 aircraft under a purchase agreement.

00293

$12.4+Infinity%1D

Analyst Views on 00293

Wall Street analysts forecast 00293 stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for 00293 is USD with a low forecast of USD and a high forecast of USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

0 Analyst Rating

0 Buy

0 Hold

0 Sell

Current: 12.610

Low

Averages

High

Current: 12.610

Low

Averages

High

UBS

maintain

$14

2025-12-23

Reason

UBS

Price Target

$14

AI Analysis

2025-12-23

maintain

Reason

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.

CLSA

Hold

maintain

2025-11-06

Reason

CLSA

Price Target

2025-11-06

maintain

Hold

Reason

The analyst rating from CLSA for CATHAY PAC AIR is "Hold" due to the following reasons: 1. Net Negative Impact: The repurchase of shares from Qatar Airways at a 4% discount to the last closing price is viewed as a negative move because there is no indication that the repurchased shares will be canceled; they will be held as treasury shares instead. 2. Public Float Concerns: The repurchase will reduce CATHAY PAC AIR's public float to about 20.53%, which is below the minimum requirement of 25%. However, the waiver from the Hong Kong Stock Exchange regarding this requirement alleviates concerns about potential equity financing in the future. Overall, while the share buyback is at a discount, the implications for the company's public float and the lack of clarity on the future of the repurchased shares contribute to the "Hold" rating.

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JPMorgan

Neutral

Overweight

upgrade

2025-10-03

Reason

JPMorgan

Price Target

2025-10-03

upgrade

Neutral

Overweight

Reason

The analyst rating from JPMorgan is influenced by several factors: 1. Market Underperformance: The Hong Kong and China aviation sectors have underperformed the market year-to-date due to cost pressures, intensified competition, and weak pricing power, which have negatively impacted profits. 2. Limited Impact of Regulatory Actions: The broker believes that the impact of anti-involution and related regulatory actions is limited, as these initiatives are currently not effective in materially improving pricing levels. 3. Flattish Price Forecast: JPMorgan maintains a forecast of flattish prices from 2025 to 2027, attributing this to ongoing demand dilution from High Speed Rail and a weak economy. 4. Optimism for Specific Stocks: The broker is most optimistic about SPRING AIRLINES and CHINA EAST AIR due to their positioning to benefit from a recovery in inland tourism, particularly following CHINA EAST AIR's divestment of its cargo business to focus on passenger transport. 5. Target Price Adjustments: JPMorgan upgraded CATHAY PAC AIR to Neutral based on its attractive valuation and dividend yield, while also upgrading CHINA EAST AIR's A-shares to Overweight and increasing its target price. SPRING AIRLINES was also rated Overweight with a target price increase. Overall, the ratings reflect a cautious outlook on the aviation sector while identifying specific stocks that are better positioned for recovery.

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.