Hot Stock MAS most active, up on better earnings outlook

Hot Stock MAS most active, up on better earnings outlook
Business & Markets 2013
Written by Surin Murugiah of theedgemalaysia.com
Monday, 29 July 2013 13:37

KUALA LUMPUR (July 29): Malaysian Airline System Bhd (MAS) was the most actively traded counter in the morning session on Monday after Maybank IB Research upgraded the stock to a Buy (from Hold) at 31 sen with a target price of 35 sen.

The research house said MAS should be profitable in 2H13 as it enters into its seasonally strong quarters of 3Q (strongest) and 4Q (second strongest) and benefits from lower operating cost from new aircraft induction.

The stock rose half a sen to 31 with 36.89 million shares done.

“We upgrade the stock to a Buy (from Hold) as the share price has plunged into value territory.
“We keep our forecasts and target price of 35 sen unchanged based on 1.2x 2013 P/B which is in-line with regional peers,” it said.
“We forecast MAS will be profitable in 2H13 and generate positive cashflow.
“Therefore MAS should trade above its current book value to reflect its improving business outlook,” said Maybank IB Research.