[ET Net News Agency, 10 June 2020] Citi Research lowered its target price for Swire
Pacific (00019) to HK$70 from HK$77 reflecting its capital contribution to Cathay Pacific
(CX)(00293) and maintained its "buy" rating.
The research house said Swire Pacific will retain control of CX and continue to own a
45% interest in CX after the HK$39bn capitalization plan is completed unless the HK
government exercises the warrants, which will dilute Swire's stake to 42.26%.
Reflecting our lowered profit forecast at CX, Citi lowered its Swire's FY2020-22
earnings forecasts by 11-90%. (KL)