We upgrade our rating on HVN from MARKET PERFORM to OUTPERFORM despite cutting our target price (TP) by 4.0% to VND41,300 per share as the share price has dropped 18% over the last three months. We cut our TP as we trim our 2020/2021 NPAT-MI forecast by 4.6%/3.2%, mainly due to our lower passenger (pax) yield (a proxy for airfares) assumptions that have been cut by 1.7%/1.2% vs our previous assumptions as we see potentially intensified competition in the industry.