Friday 29 Mar 2024
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KUALA LUMPUR (March 30): MIDF Research has upgraded AirAsia X Bhd (AAX) to “Buy” (from Neutral) with a revised target price of 40 sen (from 57 sen) and said the operating environment of the aviation industry looks more favourable for AAX

In a note today, the research house said this should improve chances of AAX’s turnaround succeeding as we are encouraged by management’s turnaround plans which addresses the weaknesses in its previous business model

“We believe AAX’s share price has found its bottom.

“Hence upgrade AAX to Buy with ex-rights target price of 49 sen based on a justified P/B of 1.3x.

“Our fair value implies and FY16 PER of 14.8x and EV/EBITDA of 6.6x,” it said.

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