Jefferies Equity upgrades Cathay Pacific to a 'buy'

It also raises its price target on the airline to HK$8.70 from HK$6.30 previously

Published Thu, Nov 19, 2020 · 09:50 PM

Singapore

JEFFERIES Equity Research has upgraded its rating on Cathay Pacific Airways to "buy" from "hold", while raising its price target to HK$8.70 from HK$6.30 previously.

The stock closed at HK$7.36 on Thursday, up HK$0.34 or 4.84 per cent.

"Earnings-wise, Cathay remains loss-making, albeit smaller post-restructuring, but we believe we are close to the inflection point," wrote Jefferies' analyst Andrew Lee in a research note on Wednesday.

He noted that key upcoming drivers include the start of the Hong Kong air travel bubble, cargo demand and yields rebounding and benefiting from global vaccines next year, as…