HONG KONG (Jan 30): Citigroup strategists downgrade AirAsia Group to sell from buy and cut its price estimate to RM2.61 from RM2.92 as its valuation has become pricey after the recent rebound.
* Sees headwinds to the share price as they expect a 13% earnings decline at AirAsia vs 11% growth at peers; earnings multiple is now in line with global low-cost carrier peers, Citigroup strategists led by Kaseedit Choonnawat wrote in a note dated Jan 29
* Sees further downside risks from potentially higher airport charges and departure levies, which would equate to additional expense of ~21% of 2019 core earnings on an annualized basis; says AirAsia may convince the Malaysian government not to increase those charges for the benefit of the overall economy
* Says there’s limited pricing pressure in Malaysia’s short-haul market as three key players plan to ease growth into the summer, but that’s inadequate to gauge stock-price direction for AirAsia because it’s going through a cycle of financial transformation
http://www.theedgemarkets.com/article/citi-downgrades-airasia-sell-slashes-price-target-11
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Created by Tan KW | Jul 26, 2024
Created by Tan KW | Jul 26, 2024
Created by Tan KW | Jul 26, 2024
Created by Tan KW | Jul 26, 2024
Michael Dreamun
This analyst is either stupid or nuts.
2019-01-31 03:25