Fine-Tuning Short and Long-Term Assumptions on China Eastern, FVE Maintained at HKD 4.25
No-moat China Eastern reported solid first-quarter results and provided some guidance for the remainder of 2019. The carrier’s first-quarter earnings featured higher operating margin, up 150 basis points year over year, driven primarily by strong cost management efforts. We have revisited our assumptions after incorporating management’s more optimistic near-term guidance and the probability-weighted impact from the ongoing conflict between China and the U.S. After changes to our forecasts, we ma...
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