[ET Net News Agency, 4 October 2018] UOB Kay Hian lifted its target price for BOC
Aviation (02588) to HK$66 from HK$60 on roll over, and maintained its "buy" rating.
The research house in June highlighted that the implied risk premium on BOC Aviation was
too high given its strong cash flow and leadership position in Asia. The stock has since
risen towards its target price.
Still, further upside is warranted as earnings and cash flow growth are expected to
extend into 2019. A potential M&A between GECAS (a leasing arm of General Electric) and
Singapore's sovereign fund GIC could also raise interest in BOC Aviation, given GIC's
historical links with BOC Aviation, UOBKH noted. (KL)