China’s aviation traffic is expected to improve over the next 12 to 24 months, and China Aviation Oil (CAO) is expected to record y-o-y earnings recovery, says RHB Group Research analyst Shekhar Jaiswal. That said, Jaiswal is lowering 2021-2023 estimates by 4-5% as traffic and jet fuel prices track below estimates. 

In a June 28 note, Jaiswal is maintaining his “buy” call on the Chinese jet fuel supplier, with a lowered target price of $1.26 from $1.30 earlier, which represents a 20% upside. 

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