March 24, 2011

AIRASIA - OSK cuts AirAsia fair value to RM3.42

Stock Name: AIRASIA
Company Name: AIRASIA BHD
Research House: OSK

OSK Research has reduced the fair value of low-cost carrier AirAsia Bhd's share to RM3.42 from RM3.86 previously, with a "buy" call, following higher jet fuel price assumption.

The research house has also revised downward, AirAsia's earnings by 3-11 per cent for the current financial year, it said in its note today.

"However, we remain fairly optimistic on AirAsia and its associates, which are slated for listing sometimes in the fourth quarter of this year, as demand for air travel continues to remain resilient," it added.

The AirAsia associates are Indonesia AirAsia (IAA) and Thai AirAsia (TAA).

AirAsia's current fuel hedging stands at 18 per cent for the first quarter of 2011 jet fuel requirements at an average of US$100 per barrel.

For the second quarter of 2011, it has hedged at 21 per cent at an average price of US$92.31 per barrel.

OSK said AirAsia continues to pro-actively manage its hedging requirements based on near-term forward bookings. -- Bernama

No comments:

Post a Comment