KUALA LUMPUR: AIRASIA BHD [] shares advanced in early trade on Friday, June 24 after the low cost carrier placed an order with Airbus SAS for 200 A320 Neo aircraft with a list price of US$18.2 billion (RM54.6 billion), to be delivered in 2016-2026
At 9.20am, AirAsia rose three sen to RM3.19 with 48,900 shares traded.
RHB Research has upgraded the stock to Market Perform from Underperform an d raised its target price to RM3.18 from RM2.66.
In a note June 24, RHB Research said that with the latest aircraft order, AirAsia has effectively locked in new capacity over the next 15 years for the entire group.
'Separately, we are raising AirAsia's FY12/12-13 net profit forecasts by 12% each, having moderated our jet fuel price assumption to US$115-120/bbl from US$120-125/bbl previously.
'Upgrade to Market Perform from Underperform as valuations have become less demanding after we rolled forward the base year from FY12/11 to FY12/12 as well as the earnings upgrade.'' Indicative fair value is raised by 20% from RM2.66 to RM3.18,' it said.
At 9.20am, AirAsia rose three sen to RM3.19 with 48,900 shares traded.
RHB Research has upgraded the stock to Market Perform from Underperform an d raised its target price to RM3.18 from RM2.66.
In a note June 24, RHB Research said that with the latest aircraft order, AirAsia has effectively locked in new capacity over the next 15 years for the entire group.
'Separately, we are raising AirAsia's FY12/12-13 net profit forecasts by 12% each, having moderated our jet fuel price assumption to US$115-120/bbl from US$120-125/bbl previously.
'Upgrade to Market Perform from Underperform as valuations have become less demanding after we rolled forward the base year from FY12/11 to FY12/12 as well as the earnings upgrade.'' Indicative fair value is raised by 20% from RM2.66 to RM3.18,' it said.
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