HK Stock Market Move | TRAVELSKY TECH (00696) fell more than 4% as Morgan Stanley downgrades the company's earnings forecast for the next two years.

TRAVELSKY TECH (00696) fell by more than 4%, as of the time of publication, down 4.4% to HK$9.12, with a turnover of HK$40.49 million. Morgan Stanley released a research report stating that it has lowered its earnings forecast for TRAVELSKY TECH in 2024, 2025, and 2026 by 11.8%, 13.5%, and 10.7% respectively, mainly due to foreign airlines and higher costs to adapt to the higher revenue growth from integrated services revenue growth lower than expected. The report states that under the assumption of unchanged weighted average cost of capital (WACC) and probability weight, the bank said its most bullish/base/most bearish scenario values for TRAVELSKY TECH have been reduced by 9%/7%/10% respectively. The bank also brings forward the valuation of TRAVELSKY TECH from mid-2025 to the end of 2025.