KUALA LUMPUR: OSK Research Sdn Bhd (OSK Research) has set a higher target price of RM1.76 per share for Malaysian Airline System Bhd (MAS) against its earlier target of RM1.58 per share.
“We reiterate that the stock’s valuation remains unattractive,” it said, besides upgrading the stock to a ‘neutral’ call.
MAS closed the financial year 2010 with a better core net loss of RM28.5 million against RM643 million in 2009 on the back of RM13 billion in revenue.
“Its full-year core losses were lower than our RM69.2 million estimates and consensus of RM102 million,” it said in a research statement yesterday.
OSK Research also said the better-than-expected numbers, on a full-year basis, were fuelled by positive cost efficiencies achieved on a per available seat kilometre (ASK) basis. — Bernama