HomeChina Stock News Credit Suisse downgrades China Eastern to “sell”, targeting at 2.75 HK dollars
Credit Suisse downgrades China Eastern to “sell”, targeting at 2.75 HK dollars
Written by Administrator
Thursday, 06 September 2007
BEIJING, Sept.6 (InfoChina) – Credit Suisse Thursday downgrades its rating on China Eastern (NYSE: CEA, HK: 0670, SH: 600115) rating to “sell” from “neutral” with a negative attitude towards CEA’s profit turnaround after tie-up with Singapore Airlines.
Severe market competition and poor operation of two Shanghai airports would be a great challenge and CEA is vulnerable to other sudden impacts since its net debt ratio is still as high as 300 percent after being injected with capital from SIA and Temasek.
Credit Suisse targets CEA’s price at 2.75 HK dollars and adjusts its estimation of CEA’s EPR 2007 to –0.08 yuan from –0.05 yuan. (Edited by Lin Fanjing,
)
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