Maybank Investment Bank upgrades AirAsia's share price
Published on: Tuesday, May 17, 2016
Kuala Lumpur: Maybank Investment Bank Research (Maybank) has upgraded its rating on low-cost airline, AirAsia Bhd, to RM2.50 from RM1.80 after considering three positive factors."First, we incorporate the benefit of new capital injection from the issuance of RM559 million of new AirAsia shares to Tune Live Sdn Bhd which will raise RM 1.006 billion in capital," it said in a note Monday.It said AirAsia will use the proceeds to prepay debt, fund aircraft acquisitions, construct a new headquarters and also for working capital needs.
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Maybank IB tweaked its financial year (FY) 2016- FY2018 net profit forecast for AirAsia by +1.6 per cent, +3.8 per cent and +4.1 per cent respectively on lower interest payments. As for the third factor, it switched to global peer average price earning ratio as the valuation metric, as many risk factors had abated."We forecast AirAsia's first quarter result core net profit to come in at RM178.8 million on the strong operating performance achieved.Stay up-to-date by following Daily Express’s Telegram channel.
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