Kenanga Research cut its call on Malaysian shipper MISC Bhd to "market perform" from "outperform' due to weak tanker charter rates, high bunker costs and overcapacity that allows for limited upside on shareholder returns.
"Despite the recent run-up in MISC's share price, we remain cautious on the company's prospect as we believe it will continue to be plagued by several factors that are now affecting the shipping industry," Kenanga said in a note on Thursday.
Kenanga, however, raised its target price and financial earnings forecasts after adjusting the ringgit to US dollar exchange rate.
MISC's target price was increased to RM4.76 per share from RM4.44.
Kenanga also increased MISC's financial year earnings forecast for 2012 to RM1.0 billion.
As of 9.39 am, MISC shares gained 0.6 percent against the Malaysian benchmark stock index's 0.2 percent rise. -- Reuters
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