KUALA LUMPUR: AIRASIA BHD [] shares advanced on Friday, July 22 after CIMB Research upped the target price for the stock following the low cost carrier's confirmation that it was setting up a joint venture (JV) in Japan with All Nippon Airways (ANA).
At 10.55am, AirAsia was up 11 sen to RM3.78 with 6.2 million shares done.
CIMB Research reiterated its positive view of this JV as per its 18 July in-depth report and said Japan was a huge untapped market with a very low LCC penetration rate.
After establishing three successful airlines in Southeast Asia, AirAsia has two more Asean JVs in the pipeline and now AirAsia Japan, it said.
As the largest airline in Japan, ANA is a good partner for AirAsia while AirAsia brings invaluable experience in the LCC industry as well as its mega orderbook of 286 A320/320neos, it said.
'We maintain our OUTPERFORM rating and upgrade our target price to RM4.70 (10x CY12 core P/E) from RM4.20 (9x).
'The potential re-rating catalysts are associate listings and the take-off of new JV airlines,' the research house said in a report July 22.
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At 10.55am, AirAsia was up 11 sen to RM3.78 with 6.2 million shares done.
CIMB Research reiterated its positive view of this JV as per its 18 July in-depth report and said Japan was a huge untapped market with a very low LCC penetration rate.
After establishing three successful airlines in Southeast Asia, AirAsia has two more Asean JVs in the pipeline and now AirAsia Japan, it said.
As the largest airline in Japan, ANA is a good partner for AirAsia while AirAsia brings invaluable experience in the LCC industry as well as its mega orderbook of 286 A320/320neos, it said.
'We maintain our OUTPERFORM rating and upgrade our target price to RM4.70 (10x CY12 core P/E) from RM4.20 (9x).
'The potential re-rating catalysts are associate listings and the take-off of new JV airlines,' the research house said in a report July 22.
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