UBS: Raises Cathay Pacific (00293.HK) target price by 3.6% to HK$20.1, maintains "Buy" rating

Zhito Finance APP has learned that UBS released a research report stating that it has raised the target price of Cathay Pacific (00293.HK) by 3.6%, from HK$19.4 to HK$20.1, while maintaining a "Buy" rating. Although the bank lowered its 2026 earnings per share forecast for Cathay Pacific by 5% due to an upward revision to its fuel price forecast, its forecast is still 14% above market consensus. The bank expects Cathay Pacific to achieve solid profit growth in 2026, with net profit potentially reaching HK$13.3 billion, up 22% year on year. In addition, based on more optimistic assumptions about yields, the bank raised its earnings per share forecasts for 2027 to 2028 by 2% to 11%. The bank expects Cathay Pacific's return on equity (ROE) to reach 22% in 2026 to 2028, compared with an average of 4.2% during the 2011 to 2019 period.