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AirAsia X rated outperform: PublicInvest
by hlk Wed 12 Feb 2014, 15:42
KUALA LUMPUR: PublicInvest Research maintains its 'outperform' call on AirAsia X Bhd (AAX) with an unchanged 12-month target price of RM1.29 per share.
According to the research house, AAX current share price has already reflected the weaker ringgit against the US dollar and the stiff competition from Malaysia Airlines (MAS).
"We remain positive on its long-term prospects and believe AAX can successfully execute its growth plans, in particular its hub-and-spoke strategic plans.
"AAX's upcoming hub in Bangkok will provide another growth engine for the airline," PublicInvest noted in its research note today.
On a separate note, AAX will be suspending its services to Male, Maldives effective from March 1. However, it will still maintain its four weekly flights to Colombo, Sri Lanka.
"Management cited challenging business conditions for the service termination. We were slightly taken aback that the flight to Male would be suspended in less than 6 months after it was launched (KL-Male-Colombo flights commenced on 28 September 2013).
"On the positive side, it reflected that AAX management is capable of taking swift action to terminate or suspend non-performing routes," said PublicInvest.
Read more: AirAsia X rated outperform: PublicInvest [You must be registered and logged in to see this link.]
According to the research house, AAX current share price has already reflected the weaker ringgit against the US dollar and the stiff competition from Malaysia Airlines (MAS).
"We remain positive on its long-term prospects and believe AAX can successfully execute its growth plans, in particular its hub-and-spoke strategic plans.
"AAX's upcoming hub in Bangkok will provide another growth engine for the airline," PublicInvest noted in its research note today.
On a separate note, AAX will be suspending its services to Male, Maldives effective from March 1. However, it will still maintain its four weekly flights to Colombo, Sri Lanka.
"Management cited challenging business conditions for the service termination. We were slightly taken aback that the flight to Male would be suspended in less than 6 months after it was launched (KL-Male-Colombo flights commenced on 28 September 2013).
"On the positive side, it reflected that AAX management is capable of taking swift action to terminate or suspend non-performing routes," said PublicInvest.
Read more: AirAsia X rated outperform: PublicInvest [You must be registered and logged in to see this link.]
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