Maybank IB downgrades MAHB to Sell, trims target price

Maybank IB downgrades MAHB to Sell, trims target price
Business & Markets 2014
Written by theedgemalaysia.com
Wednesday, 05 February 2014 09:55

KUALA LUMPUR (Feb 5): Maybank IB Research has downgraded Malaysia Airports Holdings Bhd (MAHB) to a Sell (from Hold) at RM8.15 with a lower target price of RM7.03 (from RM8.10) after MAHB announced it did not receive Certificate of Completion and Compliance (CCC) which was due on 31 Jan 2014.

In a note Wednesday, Maybank IB Research said the delay to KLIA2's May 2 launch looked imminent, given that the operational readiness and airport transfer (ORAT) normally takes 3-6 months post the CCC to complete.

The research house said investors would be lethargic with this on-going uncertainty and likely trade down or switch to other listed airport alternatives.

“We change our valuation methodology to PER as we think investors will focus on the short-term outlook of the Company until the KLIA2 issue is resolved once and for all.

“Downgrade to Sell with a lower target price, valuation methodology changed to PER (from DCF) bringing near-term valuations more in line with peers.