KUALA LUMPUR (Dec 30): Shares of low cost carrier AirAsia Bhd recovered in early trade on Tuesday after the knee jerk reaction selldown a day earlier on news that its Indonesian affiliate’s plane had gone missing early Sunday morning.

Some aviation analysts had said its share price may experience some weakness in the near term.

At 9.15am, AirAsia rose 1.49% or four sen to RM2.73 with 3.21 million shares traded.

In a note Dec 29, Maybank Investment Bank Bhd’s Mohshin Aziz said he expected weakness in the group’s share price in the near term, while reviewing his call on AirAsia.

“Expect share price weakness in the near term. Our FY15-16 earnings forecasts have downside bias and our ‘buy’ call and target price, pegged to 11 times FY15 price-to-earnings ratio are under review,” he said.

Mohshin said there would be some financial impact from the incident, but saw it being contained due to the group’s 49% holding in AirAsia Indonesia.

Mohshin has placed his "buy” rating on AirAsia and target price (TP) of RM3.25 under review.