China’s Biggest Bank Cuts Cathay to Strong Sell on Protests
- Downgrade adds to airline’s woes as fallout intensifies
- Cathay has emerged as corporate target for China amid protests
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Cathay Pacific Airways Ltd. was cut to a “strong sell” by the investment banking arm of China’s biggest lender, which said the fallout from the anti-Beijing protests in Hong Kong is set to hurt to the airline’s brand.
State-run Industrial & Commercial Bank of China Ltd. on Tuesday slapped a HK$6 price target on the stock, about a third less than where it currently trades and a level Cathay last traded at in 2001. Shares of Cathay, which tumbled to a 10-year low on Monday, extended their slide Tuesday.