Deutsche Bank cut its target price for shares of China Eastern Airlines to HK$1.15 from HK$1.98 after the Chinese airline reported its interim results without an imminent capital injection plan.

Deutsche Bank said the first-half performance, which was hit hard by surging costs, "once again reveal that the company can hardly stand on its own" and the unfavourable factors were expected to continue in the third quarter.

"But even with some outside help, we do not think that CEA warrants a valuation anywhere close to HK$3.8/share (as suggested by Singapore Airlines' earlier bid) considering the shrinkage in NAV," it said.

Deutsche Bank said it maintained a sell rating on China Eastern and said the airline's stock price had not yet found a bottom.

Shares of the Chinese airline have fallen more than 77 per cent so far in 2008, ending at HK$1.70 on Tuesday.