TigerAir - Tiger cut to Neutral vs Outperform by Macquarie

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

Macquarie cuts Tiger Airways (J7X.SG) to Neutral from Outperform, keeps target at $2.10 after budget carrier announces new low fare airline with Thai Airways (THAI.TH).



Macquarie says: “We see the establishment of the third cub as a positive long-term strategic move for Tiger,” though it will boost company's gearing.

Expects JV to drag on EBIT margins, which likely to fall to 8.1% in FY13 vs 10.4% in FY11. Notes, 1Q results announced yesterday after market, below expecations mainly on higher fuel, aircraft rental costs.



Tips limited upside for stock. Tiger last down 7.6% at $2.07.