Kim Eng Securities cuts Asiatravel.com Holdings (5AM.SG) to Hold from Buy, new target price lowered to $0.53 from $0.62, after online ticketing company reports 56% fall in 3Q net profit, missing expectations, on higher start-up costs, says Dow Jones.

Kim Eng points to slower revenue recovery in 3Q from key markets such as Thailand, Dubai.

“With the situation in Thailand and Dubai stabilising, Asiatravel.com’s earnings should improve from here. However, start-up costs could stay hefty in the next few quarters as the group rolls out new initiatives, such as online travel packages and B2B online platform, as well as marketing and promotional activities, to stay ahead of the competition,” house says.

Stock last +4.4% at $0.47.