CIMB Ups AirAsia Target To MYR1.90 From MYR1.80
CIMB Research raises AirAsia (5099.KU) target to MYR1.90 from MYR1.80, keeps Outperform call, following strong response to airline's private placement of 380 million shares. "Demand for the recently concluded 380 million share placement was especially strong from foreign institutions, allowing AirAsia to price it at MYR1.33 apiece, higher than the MYR1.05 we had imputed in our earnings model," says CIMB; thus tweaks earnings slightly (plus or minus 1%) and raises target price "as we roll a year forward." House says 9X P/E target is at higher end of its 4X-10X forward P/E multiple over past year. Cites potential re-rating catalysts to include robust revenue and earnings despite the downturn. Adds, successful private placement also removed overhang of an anticipated equity issue. Stock last down 0.7% at MYR1.39. (ECH)
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