Surge in Cathay Pacific Airways (293) Earnings: January Passenger Traffic Sees a 66.4% Increase

Cathay Pacific Airways on Smartkarma

Cathay Pacific Airways (293 HK) is receiving positive analyst coverage on Smartkarma, an independent investment research network. According to Osbert Tang, CFA, the airline is expected to exceed market expectations in FY24 with strong traffic and improved yield. This will lead to further growth and a potential return on equity of 12-13%. Tang also notes that Cathay Pacific’s associate, Air China Ltd (753 HK), will benefit from pent-up demand and the recovery of international travel. Neil Glynn also believes that Cathay Pacific’s 2024 earnings prospects are underestimated, as the airline has seen strong passenger revenue momentum and effective cost control compared to its North Asian peers. Similarly, Mohshin Aziz highlights the positive outlook for Cathay Pacific, stating that the airline’s management predicts solid passenger demand, improving cargo operations, and manageable costs. Aziz recommends a BUY for Cathay Pacific with a target price of HK$9.90, implying a 21% upside potential.

A look at Cathay Pacific Airways Smart Scores

Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma

Cathay Pacific Airways is a company that operates scheduled airline services. It also offers additional services such as airline catering, aircraft handling, and engineering. The company’s overall outlook is determined by the Smartkarma Smart Scores, which range from 1 to 5. These scores are based on different factors such as value, dividend, growth, resilience, and momentum.

Based on the Smart Scores, Cathay Pacific Airways has a positive long-term outlook. The company scores a 3 for value, indicating that it is reasonably priced compared to its peers. However, its dividend score is only a 1, suggesting that it may not be the best choice for investors looking for dividend income. On the other hand, Cathay Pacific Airways scores a 5 for growth, indicating that it has strong potential for future growth. Its resilience score is a 2, meaning that it may face some challenges in the future. Lastly, the company scores a 4 for momentum, indicating that it is performing well compared to its competitors. Overall, despite some potential challenges, Cathay Pacific Airways has a positive outlook and may be a good investment option for those looking for growth opportunities.

Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
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