KUALA LUMPUR: Shares of MALAYSIAN AIRLINE SYSTEM BHD [] (MAS) were holding steady in late morning on Thursday, May 26 despite posting net loss of RM242.34 million in the first quarter ended March 31, 2011 versus net profit of RM310.04 million a year ago.
At 10.49am, it was unchanged at RM1.58. There were 1.02 million shares traded at prices ranging from RM1.56 to RM1.60.
CIMB Equities Research downgraded it'' from Outperform to Underperform and reduce the target price from RM2.30, based on 7.0 times core price-to-earnings,'' to RM1.52, pegged to 2.0 times price-to-book value.
'The shift to book valuation is necessary given the sharp reduction in our profit forecasts. We recommend a switch to AirAsia,' it said.
Meanwhile, OSK Research said MAS's core net loss of RM306.9 million was substantially below its and consensus estimates.
'The airline faces a tough challenge in the form of poor load factors, negative yield growth and higher jet fuel costs. We downgrade our earnings to a core net loss of RM94.2 million as we cut capacity on the back of a worse than expected blow from soaring jet fuel price. We downgrade FV to RM1.10 with our SELL call maintained,' it said.
At 10.49am, it was unchanged at RM1.58. There were 1.02 million shares traded at prices ranging from RM1.56 to RM1.60.
CIMB Equities Research downgraded it'' from Outperform to Underperform and reduce the target price from RM2.30, based on 7.0 times core price-to-earnings,'' to RM1.52, pegged to 2.0 times price-to-book value.
'The shift to book valuation is necessary given the sharp reduction in our profit forecasts. We recommend a switch to AirAsia,' it said.
Meanwhile, OSK Research said MAS's core net loss of RM306.9 million was substantially below its and consensus estimates.
'The airline faces a tough challenge in the form of poor load factors, negative yield growth and higher jet fuel costs. We downgrade our earnings to a core net loss of RM94.2 million as we cut capacity on the back of a worse than expected blow from soaring jet fuel price. We downgrade FV to RM1.10 with our SELL call maintained,' it said.
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