Maybank IB cuts Malaysia Airports target price to RM9

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KUALA LUMPUR (April 22): Maybank Investment Bank Bhd (Maybank IB) is maintaining its "buy" call on Malaysia Airports Holdings Bhd (MAHB) but reduced its target price to RM9.00 from RM10.90 previously as a reflection of MAHB’s many unique challenges. 

MAHB is in the midst of five major on-going corporate developments, the research firm said in a note today.

The developments are the finalisation of the revised operating agreements, the finalisation of the Regulatory Asset Base framework, the expansion of quality criteria to be incorporated into the Quality of Service framework, the implementation of the departure levy, and the service enhancement capital expenditure.

“All five corporate developments are inter-linked and impact each other. These are complicated issues and it will take time to achieve an amicable resolution.

“In addition, there is risk of MAHB being dropped off as a FBM KLCI constituent in the next review on May 27, 2019, given that its market capitalisation is precariously ranked 35th presently,” it said.

As at 4.03 pm, MAHB's shares rose 31 sen to RM7.08 each with 4.53 million shares changing hands.