KUALA LUMPUR (Feb 22): CIMB IB Research has upgraded AirAsia X Bhd (AAX) to “Hold” at 28 sen with a higher target price of 41 sen and said AAX’s FY17 core net profit of RM139 million was 32% ahead of house forecast due to better than-expected earnings at Thai AirAsia X (TAAX) and Indonesia AirAsia X (IAAX).

In a note today, the research house said that on the back of a strong demand-led turnaround at TAAX and successful restructuring at IAAX, it raised AAX’s group core net profit forecasts by more than 100%.

“We upgrade from Reduce to Hold, with a higher target price of 41 sen, based on a higher CY18F P/BV multiple of 1.5x, from 1x previously, to reflect the better outlook,” it said.