The latest Market Talks covering the Auto and Transport sector. Published exclusively on Dow Jones Newswires at 4:20 ET, 12:20 ET and 16:50 ET.
0522 GMT – Cathay Pacific Airways’ 4Q results may improve sequentially amid the peak season for travel and cargo and softening jet-fuel prices, HSBC Global Research analysts say in a note. HSBC raises its 2023 profit before preferred dividends forecast by 9% on higher cargo yields and lower fuel prices. Average air freight rates from Hong Kong to the U.S. and Europe in 4Q so far have recovered 14%-18% on quarter, it notes. While passenger capacity is tracking ahead of the airline’s target, more direct flights between China and the U.S. could be a headwind for Cathay Pacific’s long-haul traffic, as it benefited from mainland travelers using Hong Kong as a gateway to the U.S. HSBC reiterates its buy rating and HK$9.60 target on the stock, which recently traded at HK$8.05. (email@example.com)
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