KUALA LUMPUR: Shares of MALAYSIAN AIRLINE SYSTEM BHD [] (MAS) rose to a high of RM2.02 in early trade on Tuesday, March 23 after CIMB Equities Research turned bullish on the national carrier.
At 9.55am, it was up seven sen to RM2 with 2.19 million shares done.
CIMB Research turned bullish on MAS because (1) the rights issue is finally over and the stock remains depressed, lagging behind regional peers while analysts are almost universally bearish on MAS, unlike regional airlines for which the majority of calls are buys.
It added the other positive factors for MAS were the macroeconomic environment is improving, as evidenced by Singapore Airlines’ strong results for the December quarter and the major fleet renewal programme should contribute to significant unit cost reduction from 2011.
“We are upgrading MAS from Underperform to OUTPERFORM, with a target price of RM3 (6x CY12 core EPS), revised from RM1.95 (2x adjusted NTA). Potential rerating catalysts include analysts’ upgrades, improved results in 2010 from the global yield recovery, and a structural reduction in the airline’s unit cost from 2011 onwards,” it said.
About Me
- Nuang
- Ibrahim bin Ramli@Nuang started his career with CIMB Wealth Advisors Berhad as Agency Manager in April, 2008.Previously he was an Internal Auditors and Accounts Executive with Perodua Sales Sdn Bhd since 17 August, 1994. His background:- 1.Certified of Achievement for Master Sales Leadership from Dr Lawrence Walter Ng of President of The Art Of Learning and International Of Learning Without Learning 2.Certified for eXtra Ordinary Performance of Lawrence Walter Award Certificate for One Million Ringgit Club 2007 3. Certified Life & General insurances 4. Conferred with Diploma in Business Studiess & Bachelor of Business Admin(Hons)Finance from UiTM, Terengganu Branch & Shah Alam respectively;
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