HK Stock Market Move | CATHAY PAC AIR(00293) surged more than 5% and will resume direct flights from Hong Kong to Rome, Italy. It recently received a target price upgrade from a major bank.

CATHAY PAC AIR (00293) rose by more than 5%, reaching a 5.8% increase as of the time of writing, closing at 10.4 Hong Kong dollars with a trading volume of 1.56 billion Hong Kong dollars. In terms of news, CATHAY PAC AIR announced that it will resume direct flights between Hong Kong and Rome, Italy on June 5, with three weekly seasonal services. This is CATHAY PAC AIR's second route connecting Hong Kong and Italy. In addition to Rome, CATHAY PAC AIR will also launch direct flights between Hong Kong and Hyderabad, India, Munich, Germany, and Brussels, Belgium this year. The group's low-cost airline, Hong Kong Express, will also open a route between Hong Kong and Sendai, Japan in January. The total number of global passenger destinations for the two airlines is expected to exceed 100 this year. Morgan Stanley recently released a research report, raising CATHAY PAC AIR's target price from 8.1 Hong Kong dollars to 9.1 Hong Kong dollars, while maintaining a neutral rating. Morgan Stanley has increased CATHAY PAC AIR's profit forecast for 2024 to 2026 by 13.5%, 7.4%, and 14%, respectively, to reflect: 1) assumptions of low aviation fuel prices; 2) solid passenger volume performance in November, and 3) strong cargo business. In addition, Morgan Stanley also considered Cathay's repurchase of convertible bonds and adjusted the number of shares after full dilution. HSBC Research published a research report stating that due to the higher yields of Cathay's cargo business and lower fuel costs, the bank has raised Cathay's regular profit forecast for the 2024 to 2026 financial years by 10% to 29%. The bank raised Cathay's target price from 8.3 Hong Kong dollars to 9.7 Hong Kong dollars, and upgraded its rating from "underweight" to "hold."