RHB Research has raised the recommendation on shares of Malaysia Airports Holdings Bhd (MAHB) to 'buy' from 'neutral' with a higher target price of RM6.56 compared to RM4.90 previously.
"We believe MAHB will benefit from a significant reduction in Covid-19 cases at home and abroad as the effects of the vaccine will be felt over the next 12 months," the firm said in a research note today.
Adding the firm as reported by Bernama, MAHB recorded a low number of passenger bookings in January and therefore, RHB Research projected MAHB would record a net loss in the fourth quarter of 2020.
"We expect MAHB to record a net loss of RM439 million in the fourth quarter of 2020. However, we believe investors need to look beyond short-term earnings weakness following the projected recovery in the fourth quarter of 2021 and financial year 2022.
"We also assume a high number of passengers for the financial year 2022 for both operations in Malaysia and Turkey with no change in net profit for the financial years 2020 and 2021," he added.
