Cathay Pacific’s 50% Stock Rally Faces Doubts Before Earnings

Cathay Pacific Airways Ltd. may struggle to extend its impressive stock rally as analysts point to less attractive valuations and growing pressure on earnings.

After rising 50% over the past 12 months, the shares of Hong Kong’s flagship carrier are at a six-year high and 8% above analysts’ consensus price target. Meanwhile, the proportion of buy or overweight ratings on the stock has dropped to a third from 100% at the start of last year, Bloomberg-compiled data show.