Hot Stock AirAsia gains 2.44% on robust 1Q2016 earnings outlook
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Hot Stock AirAsia gains 2.44% on robust 1Q2016 earnings outlook
- Hot Stock
[size=28]AirAsia gains 2.44% on robust 1Q2016 earnings outlook
By Surin Murugiah / theedgemarkets.com | May 11, 2016 : 9:56 AM MYTKUALA LUMPUR (May 11): Shares of low cost carrier AirAsia Bhd gained 2.44% in early trade today after CIMB IB Research maintained its “Add” rating on AirAsia with a target price of RM2.70 and said AirAsia will likely report very robust earnings in 1Q16, and probably 2Q16 as well, on the back of strong passenger demand, higher yields and lower oil prices.
At 9.36am, AirAsia rose 5 sen to RM2.10 with 8.68 million shares done.
In a note today, the research house said annualised 1Q RPK demand is already 8% higher than house full-year forecast for MAA, while loads at 85% look robust against our 80% forecast for FY16.
“As a result, AirAsia has the potential to exceed our EPS forecasts substantially.
“We reiterate Add and our target price based on a CY17 P/E of 8x (peer range 6-12x) as AirAsia is flying in crisp, blue skies. Strong 1Q results could rerate the stock,” it said.
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