May 26, 2011

MAS - MAS a 'sell', says MIDF Research

Stock Name: MAS
Company Name: MALAYSIAN AIRLINE SYSTEM BHD
Research House: MIDF

MIDF Research has downgraded Malaysia Airlines to a "sell" and reduced its target price to RM1.24, from RM2.40 previously, as its expects the airlines' second quarter to be impinged.

Factors affecting the downgrade are the limited implied upside potential, pressure from escalating fuel prices, impact from the Middle East and North Africa civil unrest and the natural disaster in Japan, MIDF said in a note today.

The research firm has also decreased its earnings forecast for financial year 2011 and 2012, between 31 and 58 per cent, to reflect the lower-than-expected first quarter earnings and rising fuel prices.

"On top of that, the management is planning new revenue management system to be rolled out in the third quarter to improve pricing methodology and revenue.

"Hence, we remain upbeat on its long-term prospects," it added. -- Bernama

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