[ET Net News Agency, 22 May 2020] Goldman Sachs lowered its target price for BOC
Aviation (BOCA)(02588) to HK$59.2 from HK$78.8 and maintained its "neutral" rating.
The research house said in normal times, BOCA has a robust model, which has been well
executed by management. However, the Covid-19 pandemic has affected almost every country
in the world, bringing into question airline financial health, the ability to pay lessors,
and the shape of the industry post-pandemic.
Goldman thinks it is likely that BOCA will have to share some of this industry pain
through lengthy deferrals or even haircuts. It estimated that the company's extensive sale
and leaseback (SLB) transactions signed year-to-date could drive capex of almost US$7bn in
2020, requiring US$3.8bn of additional new debt this year. (KL)