TigerAir - Tiger Airways off 3%; Stock overvalued: Macquarie

Stock Name: TigerAir
Company Name: TIGER AIRWAYS HOLDINGS LIMITED
Research House: MacQuarie

Tiger Airways (J7X.SG) most active stock in Singapore market, off 3% at $1.92 on over 70.5 million shares, dragged down by two block trades related to placement exercise involving substantial shareholders Indigo Singapore, Ryanasia and CEO Tony Davis. All three parties sold total of 65.8 million shares, or 12.3% of company, via placement to institutional investors at $1.90 each, according to Dow Jones.



“(We) see the sell-down (by the vendors) as a sign that, at current valuations, the share price may be over valued,” says Macquarie; downgrades stock to Underperform from Neutral, cuts target to $1.71 from $2.10, based on 10.5x FY11 EV/EBITDAR. Immediate support at placement price.