[ET Net News Agency, 10 July 2020] Daiwa Research lowered its target price for BOC
Aviation (BOCA)(02588) to HK$69 from HK$70 and maintained its "buy" rating.
The research house cited BOCA management from a conference call on 9 July saying that
aviation traffic has started to recover from its trough in April but at a slow pace.
With respect to rental deferrals, clients have started to repay their rentals and BOCA
said it is in a better negotiating position on rental deferrals following government
bailouts.
Management expects net lease yield to stay at 8-8.5% for 2020.Daiwa cut its 2020-22 EPS
forecasts by 2-4% on lower aircraft delivery and disposal assumptions to 50 and 10. (KL)