KUALA LUMPUR (Oct 4): UBS analyst Eric Lin downgraded the recommendation on AirAsia Bhd to neutral from buy.

Lin raised the target price to RM3.70 from RM3.65, implying a 7.2% increase from the last close.

The target is 3.9% above the consensus average of RM3.56. AirAsia had 17 buy recommendations, four holds and three sells before today.

Investors who followed Lin's recommendation would have received a 34% return in the past year before today, compared with the 32% return on the shares.

In the past six years and five months, UBS has rated AirAsia buy five times and neutral four times. The shares rose an average 22% in the periods rated buy and fell an average 15% in the periods rated neutral.

Analysts raised their consensus one-year target price for the stock by 6.3% in the past six months. Forecasts range from RM2.19 to RM4.25.

Lin covers 22 companies; 10 are rated neutral, five are rated buy, two are rated restricted and five are rated sell.