Bank of America Securities believes that a further increase in Air China's holdings can strengthen cooperation with the Cathay Pacific Alliance, including route and network integration, and help Cathay Pacific handle mainland regulations and customer risks.
The Zhitong Finance App learned that Bank of America Securities released a research report stating that it maintains Cathay Pacific's (00293) “buy” rating and believes that the potential increase in holdings highlights Cathay Pacific's deep value, with a target price of HK$10.7. There are rumors that Air China (00753) is interested in increasing its holdings of Cathay Pacific. The bank indicates that if Air China increases its shareholding ratio to more than 30%, or triggers a comprehensive takeover offer, Swire Group A (00019) will also agree to an additional increase in its holdings. The bank believes that a further increase in Air China's holdings could strengthen cooperation with the Cathay Pacific Alliance, including route and network integration, and help Cathay Pacific handle mainland regulations and customer risks.