Friday, December 17, 2010

AmResearch reaffirms Buy on AirAsia, unch FV RM3.10

KUALA LUMPUR: AmResearch has re-affirmed its BUY rating on AIRASIA BHD [] with an unchanged fair value of RM3.10 a share.

'Our valuation continues to peg AirAsia at 11x FY11F EPS of 28 sen a share,' it said on Friday, Dec 17.

AirAsia announced last night that it had entered into an agreement with thre local individuals to set up a low cost carrier (LCC) in the Philippines, under the JV named AirAsia Inc.

'AirAsia is the cheapest LCC trading at a 25% discount to peers' average of 12 times and a 35% discount to historical average of 14 times. We see a potentially strong basis for a share price re-rating on the stock over the next 12 months,' AmResearch said.

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