Morgan Stanley: Downgraded BOC AVIATION (02588) target price to HK$87.2, maintaining "Overweight" rating.
The bank believes that the rise in the yield of the U.S. ten-year Treasury bonds has led investors to demand higher returns. As a result, the target market price-to-book ratios under the optimistic and base scenarios have been lowered from 1.2 times and 1.1 times to 1.1 times and 1.0 times, respectively.
Morgan Stanley has released a research report stating that it is adjusting its net profit forecasts for BOC AVIATION (02588) for the years 2026 to 2028, reducing estimates by 0.3%, 1.9%, and 2.3% respectively, to reflect the latest situation following the performance in the first half of the year. The bank believes that the rise in the yield of the U.S. ten-year Treasury bonds has led investors to demand higher returns. As a result, the target price-to-book ratio under the bullish and base scenarios has been lowered from 1.2 times and 1.1 times to 1.1 times and 1.0 times, respectively. The target price has been correspondingly reduced by 5.5% from HKD 92.3 to HKD 87.2, maintaining a "buy" rating.
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