28-Nov-2006 9:46 AM
BROKER CALL - Shanghai International Airport 'overweight' - Morgan Stanley
Beijing (XFNews-ASIA) - Morgan Stanley said its rating on Shanghai International Airport Co Ltd has been maintained at "overweight" with its target price raised to 19.25 yuan from 16.93.
The action was taken following reports of the company's capex savings, lower cost of capital and higher-than-expected investment income from Pudong Aviation Fuel Supply Co.
Morgan Stanley said it expects corporate activity since it initiated coverage of the company, including a restructuring, to be favorable for the stock's value, but warned that a slower-than-expected aircraft movement growth could reduce revenue and earnings.