Credit Suisse Group AG raised its share-price estimate to 4.80 ringgit from 4.30 ringgit after the carrier introduced fuel surcharges. The stock rating was maintained at “outperform,” Annuar Aziz, an analyst at Credit Suisse, wrote in a report 9 May 2011.
The 5 year chart on the left shows recent gains by AirAsia and a significant demand by institutional investors and funds.
Averaging RM1.80 for the first two years, then RM1.50 the next two years, and finally breaking both the RM2.50 and RM3.00 barrier, AirAsia has finally cemented its position as the largest South East Asian (ASEAN) carrier and overshadowing national carrier Malaysia Airlines in terms of fleet, capacity, profits, routes and overall staff satisfaction.
Several other researchers have further upped the target price of AirAsia to above RM4.00. The recently announced fuel surcharge was even greeted with a mature acceptance and signals a positive method to stem the increase in jet fuel prices.
Averaging RM1.80 for the first two years, then RM1.50 the next two years, and finally breaking both the RM2.50 and RM3.00 barrier, AirAsia has finally cemented its position as the largest South East Asian (ASEAN) carrier and overshadowing national carrier Malaysia Airlines in terms of fleet, capacity, profits, routes and overall staff satisfaction.
Several other researchers have further upped the target price of AirAsia to above RM4.00. The recently announced fuel surcharge was even greeted with a mature acceptance and signals a positive method to stem the increase in jet fuel prices.
And it is easy to see that branding spread and viral-marketing effects AirAsia has on travellers. Travellers will tell their friends, families. Championing their low cost airfare to a dream destination. And anticipating for the next round of zero fares, or super low promotional fares. Stop ten people on their tracks and likely 9 out of 10 will have heard, flown, thought about, curious about, AirAsia. Much like Coca Cola. It is everywhere (now). Perhaps even Coke would have coined the term now everyone could have a fizzy drink.
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