DBS: Upgrades China Eastern Airlines (00670) to "Hold", maintains target price of 2.9 Hong Kong dollars.

DBS released a research report stating that although the fiscal year 2026 will still be a difficult year for Chinese airlines, the recent sharp decline in industry stock prices has largely reflected the market's pessimistic expectations for the short-term industry outlook. The bank predicts that although current valuations have already reflected most of the downside risks, China Eastern Airlines (00670) will still record a loss this year. The bank stated that current industry valuations seem reasonable, but if the operating environment significantly deteriorates, the possibility of further stock price declines cannot be ruled out. The bank has upgraded its rating for China Eastern Airlines to "hold" with a target price of 2.9 Hong Kong dollars unchanged.