by winston » Mon Apr 20, 2015 6:41 pm
JP Morgan lifts TPs for mainland's 3 biggest airlines; top pick as AIR CHINA
JP Morgan, in its report, raised the profit forecast for three largest Chinese airlines by about 31% on average, in an attempt to reflect the stronger than expected passenger traffic growth.
The research house expected CHINA SOUTH AIR (01055.HK) +0.110 (+1.488%) Short selling $28.41M; Ratio 5.420% , AIR CHINA (00753.HK) +0.120 (+1.329%) Short selling $3.97M; Ratio 1.509% and CHINA EAST AIR (00670.HK) 0.000 (0.000%) to record approximately 206%, 85% and 69% surge for net profit in 2015.
The oversupply risks in China will be lower, especially for next year. Longer term, potential supply shortage may arise.
AIR CHINA remained to be the top pick, with a rating of Overweight and target price of $11 (up from $8.3), followed by CHINA SOUTH AIR, with an Overweight rating and target price of $8 (up from $5.39). CHINA EAST AIR was maintained at Neutral and the target price was hiked from $4.3 to $6.
Source: AAStocks Financial News
It's all about "how much you made when you were right" & "how little you lost when you were wrong"