KUALA LUMPUR: Shares of AirAsia and Malaysian Airlines declined at noon on Tuesday, March 15 following HwangDBS Vickers cutting down its target price for the two stocks.
At 12pm, AirAsia was down nine sen to RM2.45 while MAS fell six sen to RM1.80.
The research house in a note March 15 said AirAsia's growth was not sustainable and that it expected high oil prices and weak yield to drag earnings.
It slashed AirAsia's FY11F-12F earnings by 46-49% and it expected more downside on recent oil price increase.
'Downgrade to fully valued, target price cut to RM2 based on 11 times FY11F EPS,' it said.
Meanwhile, HwangDBS Vickers said MAS's earnings would be dragged by high oil prices.
It cut the carrier's FY11F-12F earnings by 19%-27%.
'Downgrade to fully valued, target price cut to RM1.50 based on 15 times FY11F EPS,' it said.
At 12pm, AirAsia was down nine sen to RM2.45 while MAS fell six sen to RM1.80.
The research house in a note March 15 said AirAsia's growth was not sustainable and that it expected high oil prices and weak yield to drag earnings.
It slashed AirAsia's FY11F-12F earnings by 46-49% and it expected more downside on recent oil price increase.
'Downgrade to fully valued, target price cut to RM2 based on 11 times FY11F EPS,' it said.
Meanwhile, HwangDBS Vickers said MAS's earnings would be dragged by high oil prices.
It cut the carrier's FY11F-12F earnings by 19%-27%.
'Downgrade to fully valued, target price cut to RM1.50 based on 15 times FY11F EPS,' it said.
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