KUALA LUMPUR (July 27): Maybank Investment Bank (Maybank IB) Research has re-initiated coverage on AirAsia X Bhd (AAX) with a “buy” rating at RM1.80 and target price (TP) of RM3.58 and said post-Covid-19, fares are a lot higher and aircraft lease rates are sharply lower relative to pre-pandemic.
In a note on Thursday (July 27), Maybank IB Research aviation analyst Samuel Yin Shao Yang said that moreover, AAX is now effectively debt-free.
He forecast record core net profit of RM160.1 million for FY2023 and RM256.5 million for FY2024.
“Ascribing 10 times CY2023 estimated PER (price-earnings ratio) to AAX, we derive a TP of RM3.58.
“With nearly 100% upside, we re-initiate coverage on AAX with a 'buy' call. Catalysts are: (i) lifting of Practice Note 17 classification; (ii) more upside from 49%-owned Thai AirAsia X; and (iii) more upside from acquisition of Capital A Bhd’s short-haul airlines,” he said.