Asiatravel - Asiatravel.com target raised to $0.53 by DBS Vickers

Stock Name: Asiatravel
Company Name: ASIATRAVEL.COM HOLDINGS LTD
Research House: DBS Vickers

DBS Vickers lifts Asiatravel.com (5AM.SG) target price to $0.53 from $0.42 after rolling over valuation to FY11, says Dow Jones.



“We expect FY11 to be a recovery year,” says broker.



DBS Vickers notes online hotel reservation company’s performance this year bogged down by high start-up losses associated with package tours designed for Resorts World Sentosa’s Universal Studios theme park, plus lower bookings due to social unrest in Thailand, reduced room rates in Dubai following supply-demand mismatch.



Still, keeps Hold call on view valuations stretched; “we would only look to re-rate once there is more evidence of sustainable earnings recovery.” Shares flat at $0.46.