AST [BUY +32.8%] - 2023 revenue to return to pre-COVID level

- We upgrade our rating for AST from OUTPERFORM to BUY and raise our target price (TP) by 12% as we increase our earnings forecast and roll our TP horizon forward from end-2023 to mid-2024.

- We increase our aggregate 2023F-2027F NPAT-MI by 12% thanks to our lower SG&A expense projections. Our 2023/24F SG&A expenses equal 130% and 160% of 2019’s level, respectively.

- We forecast 2023F and 2024F NPAT-MI to respectively rebound to 58% and 110% of AST’s bottom line in 2019 thanks to a recovery in international air passenger numbers and more retail stores.