Stock Name: AIRASIA
Company Name: AIRASIA BHD
Research House: HWANGDBS
KUALA LUMPUR: Hwang DBS Vickers Research (HDBSVR) has upgraded AirAsia to a Buy with a target price of RM1.95 based on 9x CY11F EPS. It said on Thursday, May 6 the low-cost carrier is well-positioned to capitalise on demand recovery with its fleet expansion programme. "Ability to fund new aircraft purchases and repay loans no longer a major concern as operating cash flows strengthen," it said. HDBSVR said AirAsia is trading at 6.1x CY11F EPS and 1.1x CY11F BV, 27-33% discount to its peers' and also hovering near its historical low valuations. "We believe this is unwarranted considering that earnings downside for AirAsia is limited as sector gradually recovers," it said. "Upgrade to Buy with RM1.95 TP based on 9x CY11F EPS, consistent with the average small and mid-cap peers' valuation. Catalysts for the stock include higher load factor, yield, and ancillary income," it said.
Company Name: AIRASIA BHD
Research House: HWANGDBS
KUALA LUMPUR: Hwang DBS Vickers Research (HDBSVR) has upgraded AirAsia to a Buy with a target price of RM1.95 based on 9x CY11F EPS. It said on Thursday, May 6 the low-cost carrier is well-positioned to capitalise on demand recovery with its fleet expansion programme. "Ability to fund new aircraft purchases and repay loans no longer a major concern as operating cash flows strengthen," it said. HDBSVR said AirAsia is trading at 6.1x CY11F EPS and 1.1x CY11F BV, 27-33% discount to its peers' and also hovering near its historical low valuations. "We believe this is unwarranted considering that earnings downside for AirAsia is limited as sector gradually recovers," it said. "Upgrade to Buy with RM1.95 TP based on 9x CY11F EPS, consistent with the average small and mid-cap peers' valuation. Catalysts for the stock include higher load factor, yield, and ancillary income," it said.
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