Cathay Airlines drops 1.52% Goldman Sachs maintains buying to see HK $13.2

Cathay Airlines (00293-HK) closed down 1.52%, reported 10.40 Hong Kong dollars, a deal of HK $42.8048 million, the stock market today, the index slightly up 0.03%. Goldman maintained the stock-buying rating and listed it on the list with a target price of HK $13.20.　　Cathay's aviation capital is still plentiful, the bank said, even though Goldman Sachs expects its 09 debt ratio to worsen, and Cathay has made it clear that it does not need equity financing in the near future. The bank also said it had other options if it wanted to return to a more normalized level of indebtedness, such as capital spending delays, the sale of aircraft, and divestiture. Goldman also said that if Cathay's capital was adjusted, the potential benefits would outweigh the expected dilution of equity returns. However, the bank said capital adjustments could reduce earnings and valuations by a small margin, making it harder to balance the interests of existing shareholders.