KUALA LUMPUR (March 29): CIMB IB Research has maintained its “Add” rating on AirAsia Bhd at RM1.89 with a higher target price of RM2.43 (from RM1.80) and said FY16 looks like a good year for the AirAsia group, as its FY16 fuel price is largely locked in, while the recent ringgit appreciation may stick.

In a note today, the research house upgraded its EPS forecasts to reflect the stronger ASEAN currencies, and raised target price to RM2.43, still based on 6x CY17 P/E (peer range 6-12x).

“Our Add call is intact; AirAsia will benefit from the return of foreign funds,” it said.