[ET Net News Agency, 25 September 2019] J.P. Morgan lifted its target price for Air
China (00753) to HK$8 from HK$7.7 and maintained its "overweight" rating.
The research house finds Air China undervalued given the high 50% earnings growth
expected for FY2020, despite a weaker Rmb. JPM also turned more positive on Air China
given that its near-term capacity growth during the transition period is no longer
constrained now that it is allowed to operate out of both airports in Beijing, including
the new Beijing Daxing Airport (BDA).
JPM is also not concerned in the short term with stiffer competition arising from the
opening of BDA, as it expects limited new slots to be made available initially. (KL)