Morgan Stanley has released a research report adjusting its net profit forecasts for BOC AVIATION (02588) for the 2026 to 2028 period, reducing them by 0.3%, 1.9%, and 2.3% respectively, to reflect the latest developments following the first-half results. The firm believes that with the rise in US 10-year Treasury yields, investors are demanding higher returns, prompting a cut in the target price-to-book multiples for both its bull and base case scenarios from 1.2 times and 1.1 times, down to 1.1 times and 1.0 times, respectively.

Consequently, the target price has been adjusted downward by 5.5% from HK$92.3 to HK$87.2, while the "Overweight" rating is maintained.