KUALA LUMPUR: Hwang DBS Vickers Research is maintaining AirAsia Fully Valued at the current price of RM2.94 which is pegged at 11 times FY11 earnings per share.
'We remain concerned about the airline given the current high oil prices could dampen travel demand and earnings. The recently declared 2.8sen net DPS for FY10 is unlikely to recur,' it said on Thursday, May 5.
HDBSVR said Thai AirAsia has better growth prospects than PT Indonesia AirAsia (IAA), due to a less competitive and regulated domestic market
However, high jet fuel prices will remain a challenge for both, the research house said, adding its 12-month target price is RM2.
'We remain concerned about the airline given the current high oil prices could dampen travel demand and earnings. The recently declared 2.8sen net DPS for FY10 is unlikely to recur,' it said on Thursday, May 5.
HDBSVR said Thai AirAsia has better growth prospects than PT Indonesia AirAsia (IAA), due to a less competitive and regulated domestic market
However, high jet fuel prices will remain a challenge for both, the research house said, adding its 12-month target price is RM2.
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