Company Name: AIRASIA BHD
| Research House: MIDF | Price Call: BUY | Target Price: 3.70 |
KUALA LUMPUR: MIDF Research has reiterated its "buy" call on AirAsia Bhd with an unchanged target price of RM3.70 per share.
The research house said the current share price weakness presents a good buying opportunity and expects confidence to return from the second quarter onwards. "We maintain the buy call and target price, premised on 10 times AirAsia's financial year 2015 earnings.
"We believe that a revocation of AirAsia Indonesia's licence is unlikely and the AirAsia Group's market share would be protected by the strong presence in Asean," MIDF Research said in a note today.
AirAsia's share price has come under pressure following the suspension of its Indonesian affiliate's licence to operate the Surabaya-Singapore route pending an investigation.
At 11.40 am, AirAsia Bhd's shares on Bursa Malaysia chalked up six sen to RM2.55, with 14.09 million units traded. - BERNAMA
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