[ET Net News Agency, 22 October 2020] Citi Research lowered its target price for Swire
Pacific (00019) to HK$64 from HK$66.5 and maintained its "buy" rating.
The research house said Cathay Pacific's (00293) restructuring plan will cost HK$2.2bn.
Mainly reflecting its revised profit forecast at Cathay, Citi adjusted its Swire's 2020-22
earnings forecast by -HK$2,214m to +HK$539m.
Citi believes the CX restructuring plan should remove one of Swire's key overhangs.
Swire's shares look cheap, trading at a 62% NAV discount. The current share price also
implies that the stock is trading at a 43% discount to its stake in Swire Properties
(01972), with all other assets less net debt being valued at zero. (KL)