DBS Group has upgraded China Eastern Airlines (00670) to "Hold" with a target price of 2.9 Hong Kong dollars.

Wisdom Capital APP learned that 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 prospects of the industry. The bank predicts that although most of the downside risks are already reflected in current valuations, China Eastern Airlines (00670) will still incur losses this year. The bank stated that industry valuations currently seem reasonable, but if the operating environment deteriorates significantly, the possibility of further stock price declines cannot be ruled out. The bank has upgraded its rating on China Eastern Airlines to "hold" with a target price of 2.9 Hong Kong dollars unchanged.