Morgan Stanley: Maintains "Equal-weight" rating on TRAVELSKY TECH (00696) with target price lowered to HK$8.8

Morgan Stanley released a research report stating that the target price of TRAVELSKY TECH (00696) has been lowered from 9.5 Hong Kong dollars to 8.8 Hong Kong dollars, a decrease of 7.4%. The most bullish target price has been lowered from 14.5 Hong Kong dollars to 13.2 Hong Kong dollars, a decrease of 9%. The most bearish target price has been lowered from 4.8 Hong Kong dollars to 4.3 Hong Kong dollars, a decrease of 10.4%. The investment rating is "in line with the market". Morgan Stanley stated that the profit forecast for TRAVELSKY TECH for 2024, 2025, and 2026 has been revised down by 11.8%, 13.5%, and 10.7% respectively, mainly due to foreign airlines and higher costs to adapt to lower-than-expected growth in integrated service revenue in response to higher system revenue growth. The report mentioned that under the assumption of unchanged weighted average cost of capital (WACC) and probability weights, the bank stated that its scenario values for TRAVELSKY TECH's most bullish/basic/most bearish have been reduced by 9%/7%/10%. The bank also moved the valuation of TRAVELSKY TECH forward from mid-2025 to the end of 2025.