Thursday 28 Mar 2024
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KUALA LUMPUR (Oct 4): Credit Suisse reinstated its coverage on AirAsia Group Bhd with a RM2.32 target price (TP) and outperform rating, Bloomberg reported today.

Bloomberg, quoting Credit Suisse' note, said there is hidden value in the budget airline's technology ventures.

"Carrier has consistently grown market share in Southeast Asia in a profitable manner since inception. Outlook to improve, driven by limited capacity growth within Asean and turnaround of AirAsia Group's operations in the Philippines, Thailand and India.

"AirAsia Group's return on invested capital will likely surpass its weighted average cost of capital by 2021. Investors will also be paid via dividends of 5%-8% yield in FY20-21E," Bloomberg reported.

At Bursa Malaysia today, AirAsia Group shares settled down two sen or 1.18% at RM1.68 at 12:30pm. The stock saw 4.73 million shares traded.

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