Transportation, logistics cut to underweight on Covid-19 damage

“We project passenger volume for AirAsia (Sell, 43 sen) to shrink by 35% YoY in FY20F, followed by a 25% rebound in FY21F from a low base (again, assuming that by then the pandemic will have been significantly contained or vaccines will have been developed and made available), ” AmInvestment Research said.

KUALA LUMPUR: AmInvestment Research downgrades its call on the transportation & logistics sector to Underweight from Neutral due to the severe impact from the Covid-19 pandemic.

In its report issued on Thursday the research house said it has become increasingly clear that the damage inflicted by the Covid-19 pandemic to the sector is no mere dent but destruction of varying degrees to different segments.