Higher oil prices to weigh on AirAsia X
CIMB Equities Research expects significantly weaker performance for the rest of the year for long-haul low-cost carrier AirAsia X
due to higher oil prices, with FY18F estimated to be loss-making.
The research house said on Wednesday that based on prior-year quarterly trends, AAX’s 1Q18 core net profit (CNP) of RM91mil was 30% more than its previous full-year forecast.
“We downgrade our call from Hold to Reduce and lower target price to 29 sen, based on a lower CY18F P/BV multiple of 1.3 times (one standard deviation below mean), from 1.5 times previously,” it said.
Read full story: thestar.com.my
Posted: 23 May 2018 20:54:06