[ET Net News Agency, 20 November 2017] Jefferies Research said it has not changed its
view on Cathay Pacific (00293) after their analyst briefing, hence it maintained its "buy"
rating and HK$13.8 target price, due to likely gradual earnings recovery, with management
expecting earnings to improve in 2018.
Positives from the briefing are: (1) passenger yields sequentially higher, but still
under pressure, (2) Premium class traffic and yields improving, and (3) cargo yields
continue to be strong.
Negatives are: (1) no breakdown of HK$4bn cost saving target, and (2) strong cargo
insufficient to offset pax business. (KL)