KUALA LUMPUR (Jan 7): Kenanga IB Research has maintained its “Neutral” rating on the aviation sector and said it does see any near-term catalyst that could excite the sector, especially when passenger traffic growth is expected to remain uninspiring this year.

In a note today, the research house however, still kept its Outperform call on AirAsia Bhd with an unchanged Target Price of RM1.86 and said believed that AirAsia will continue to benefit from the low jet-fuel cost and also yield improvement from associates, despite some compression in yields domestically.

“As for Malaysia Airports Holdings Bhd, we are keeping our Underperform call with a lower target price of RM5.24 based on SoP, due to consistent earnings disappointments,” it said.