[ET Net News Agency, 11 September 2019] BofA Merrill Lynch cut its target price for
China Eastern Airlines (CEA)(00670) to HK$4.85 from HK$5.4 and maintained its "buy"
rating.
The research house said it was weak in 1H as (1) more capacity deployed in tier-3/4
cities due to CAAC policy constraints, (2) from 2Q business travel has decelerated, and
domestic premium cabin performed weaker than expected.
CEA expects that it would keep high growth in the smaller cities in the future.
July/August overall yield was not as strong because capacity growth is higher at over 10%,
so overall summer performance is reasonable. Also, price hike impact is not as strong.
Domestic RASK (Revenue per Available Seat-Kilometer) will likely see a small decline to
flat growth in 3Q. (KL)
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Super Quote | Detail Quote | Interactive Chart | Transaction | Related News | Related Securities | Company Information | Dividend Records | Short Sell
00670 CHINA EAST AIR
Nominal 
1.980 +0.020 (+1.020%) Others
11/09/2019 13:38
{I-bank focus}BofAML cuts China Eastern Airlines to HK$4.85
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