Date of Report: October 25, 2024
Broker: CGS International

Overview

AirAsia X Berhad is a Malaysian low-cost, long-haul airline. The company operates flights to various destinations across Asia, Australia, and the Middle East. Known for its budget-friendly fares and extensive route network, AirAsia X caters to both leisure and business travelers.

Stock Performance

AirAsia X is part of CGS International’s actively managed portfolio with a positive outlook. The stock was last traded at RM1.94, reflecting a slight dip from its entry price of RM1.99. Despite the recent decline, the airline remains a key holding, supported by strategic initiatives and market recovery in the travel sector.

Technical Indicators

• Entry Price: RM1.990
• Current Price: RM1.940
• Stop Loss: RM1.790
• Target Prices: RM2.06, RM2.20
• Position: BUY
• Profit/Loss: -2.5%

Recent Performance Analysis

AirAsia X’s stock has seen a decline of 2.5% from its entry price, currently trading at RM1.94. While the stock has faced some short-term pressure, the company remains focused on capturing market demand with its affordable fare strategy and expanding route network. The report indicates optimism for recovery as the aviation sector continues to rebound post-pandemic.

Investment Strategy

CGS International recommends maintaining a buy position for AirAsia X, with target prices set at RM2.06 and RM2.20. The recommended stop-loss level is RM1.790, allowing investors to manage risk effectively. The company’s strategic focus on cost-efficiency and expanding flight routes is expected to drive future growth.

Analyst Commentary

CGS International remains cautiously optimistic about AirAsia X’s potential to recover and grow. While there have been recent challenges reflected in the stock price, the overall outlook remains positive due to the airline’s ability to adapt and expand its services. Investors seeking to capitalize on the ongoing recovery in the aviation industry may find AirAsia X a worthwhile investment, particularly as travel demand continues to increase.

Source: CGS International Trendspotter, October 25, 2024.