Wednesday, October 20, 2010

AirAsia up on MIDF Research upgrade

KUALA LUMPUR: AIRASIA BHD [] shares advanced on Wednesday, Oct 20 after MIDF Research upgraded the stock to a buy with a target price of RM2.88 based on FY11 EPS pegged at PER of 8.5 times, which is the mean PER of its peers.

At 12noon, AirAsia was up 8 sen to RM2.53 with 4.33 million shares done.

MIDF Research said it was upbeat on the continuing growth of AirAsia as demand for travelling continues and its ability to resist past shocks.

"Hence, we are revising our full year FY11 net earnings by 26.9% to RM834.5m in FYE11.

"We believe that Air Asia will perform strongly in FYE11 and we expect that ancillary income will grow 19%y-o-y and load factor to reach 78%," it said in a note on Wednesday.


No comments:

Post a Comment