Stock Name: MAS
Company Name: MALAYSIAN AIRLINE SYSTEM BHD
Research House: CIMB
KUALA LUMPUR: CIMB Equities Research maintained its Underperform call on MALAYSIAN AIRLINE SYSTEM BHD [] (MAS) and maintained a target price of RM1.52.
It said on Friday, June 17 that MAS had, in a briefing on Thursday, reiterated on the benefits of its oneworld alliance membership.
The network would enable MAS tap into a global network of connectivity, a seamless travel experience, frequent flier benefits and airport lounge access.
'We agree that joining oneworld is the right move and a MAS-Qantas partnership through the alliance could form an effective counterweight to the recently announced SIA-Virgin Australia tie-up.
'But we continue to rate MAS an UNDERPERFORM as the 2Q loss is expected to be much larger than the 1Q loss and the benefits of the alliance will only start flowing through in 2013. We maintain our EPS forecasts and target price of RM1.52, which is based on 2x P/BV,' it said.
Company Name: MALAYSIAN AIRLINE SYSTEM BHD
Research House: CIMB
KUALA LUMPUR: CIMB Equities Research maintained its Underperform call on MALAYSIAN AIRLINE SYSTEM BHD [] (MAS) and maintained a target price of RM1.52.
It said on Friday, June 17 that MAS had, in a briefing on Thursday, reiterated on the benefits of its oneworld alliance membership.
The network would enable MAS tap into a global network of connectivity, a seamless travel experience, frequent flier benefits and airport lounge access.
'We agree that joining oneworld is the right move and a MAS-Qantas partnership through the alliance could form an effective counterweight to the recently announced SIA-Virgin Australia tie-up.
'But we continue to rate MAS an UNDERPERFORM as the 2Q loss is expected to be much larger than the 1Q loss and the benefits of the alliance will only start flowing through in 2013. We maintain our EPS forecasts and target price of RM1.52, which is based on 2x P/BV,' it said.
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