Friday 29 Mar 2024
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KUALA LUMPUR (May 11): CIMB IB Research has maintained its “Add” rating on AirAsia Bhd with a target price of RM2.70 and said AirAsia will likely report very robust earnings in 1Q16, and probably 2Q16 as well, on the back of strong passenger demand, higher yields and lower oil prices.

In a note today, the research house said annualised 1Q RPK demand is already 8% higher than house full-year forecast for MAA, while loads at 85% look robust against our 80% forecast for FY16.

“As a result, AirAsia has the potential to exceed our EPS forecasts substantially.

“We reiterate Add and our target price based on a CY17 P/E of 8x (peer range 6-12x) as AirAsia is flying in crisp, blue skies. Strong 1Q results could rerate the stock,” it said.

 

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