Tuesday, August 11, 2009

AirAsia gets 'neutral' rating at OSK

11 August 2009

OSK Research has recommended a "neutral" stock rating on budget carrier AirAsia with a target price of RM1.48.

The research outfit also expects AirAsia's upcoming quarterly financial results scheduled for release tomorrow may be weaker than the preceding quarter following the escalating fuel costs.

OSK noted that AirAsia has scrapped a plan to partner Vietnam Shipbuilding Industry Group (Vinashin) to set up a budget carrier in Vietnam.

The latest development is likely to bode well for market sentiment, OSK said.

AirAsia terminated a letter of intent (LOI) signed by both parties almost two years ago. The company has through a letter dated August 10, “09 informed Vinashin that the LOI is now of no further effect save for confidentiality provisions which the parties had agreed to upon signing the LOI."

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