UBS has released a research report raising its price target for BOC AVIATION (02588) from HK$104.2 to HK$106.1, reflecting an increase in the target price-to-book ratio from 1.22 times to 1.23 times, along with a reduction in the cost of equity assumption from 8.4% to 8.2%. The firm maintains its "Buy" rating on the stock.

The bank noted that the company's first-half earnings were broadly in line with expectations, with the 2026 earnings forecast remaining largely unchanged. However, it has trimmed its 2027-2028 projections by 2-4% to account for lower expected lease rental income, partially offset by higher anticipated gains from aircraft disposals. Earnings for 2026-2028 are now projected at US$787 million, US$900 million, and US$1.026 billion, respectively.