Morgan Stanley issued a report stating that it lowered Cathay Pac Air's target price by 23%, from HKD 10.5 to HKD 8.1. The target EV/EBITDA multiple remains basically unchanged, and the optimistic and pessimistic target prices are lowered to HKD 11.1 and HKD 4.2, respectively. The rating was downgraded from "shareholding" to "sync with the market". The bank believes that 25% of Cathay Pac Air's revenue exposure is to the freight business. Strong demand may come from Mainland China's e-commerce industry, leading to a surge in freight rates in the peak season of the fourth quarter of this year, which will bring profit growth. Furthermore, following Cathay Pac Air's repurchase of all of its preferred shares in the first half of this year, it is expected that the company will make a cash dividend payment in the middle of the 2024 fiscal year or later fiscal year; a 6-7% dividend yield appears to be attractive to Morgan Stanley. Morgan Stanley lowered its revenue expectations for the company in 2024 by 15% and in 2025 by 16%. It is expected that net income in 2024 will decrease compared to 2023, and its profit forecast for 2024-2025 is basically in line with consensus.