[ET Net News Agency, 6 May 2021] Morgan Stanley lifted its target price for China
Southern Airlines (CSA)(01055) to HK$6.88 from HK$5.33 and maintained its "overweight"
rating.
The research house expects CSA's earnings to bottom out after 1Q, with sequential
traffic recovery for domestic routes in 2Q/3Q. Morgan believes the restrictions on
non-domestic flights could be lifted over time on vaccine developments.
It sees potential improvement in yield and profitability over the medium term, due to a
favorable supply and demands dynamic in 2022-23. Over the long term, CSA may benefit from
the development of the Greater Bay Area. (KL)