OSK Optimistic On AirAsia's 2012 Outlook; Keeps Buy

29 Dec 2011

OSK Research says it remains optimistic on AirAsia's (5099.KU) 2012 outlook as the low-cost carrier is expected to capitalize on its new hubs in Manila and Tokyo.  "Elsewhere, it will also get an earnings boost from its fruitful AirAsia Expedia JV tie-up and from monetizing its training academy," the house adds.  It also says, in view of the lower jet fuel prices, "we expect the airline's bottomline to expand by 21% in FY12."  It maintains a Buy rating on the stock, with a price target of MYR4.57 and says the stock is at an attractive 5% discount to its FY12 P/E of 9.6X. AirAsia is down 0.5% at MYR3.73.