Company Name: TIGER AIRWAYS HOLDINGS LIMITED
Research House: Phillip Securities
Phillip Securities starts Tiger Airways (J7X.SG) at Sell with a $1.65 target. Says the stock is 1 of the most expensive for airlines as it trades at 17x forward P/E and 6x P/B.
Says the low-cost carrier market is highly competitive, making it hard for Tiger to price tickets at a premium.
Adds Tiger’s cost advantage in Singapore over other LCCs is no longer as strong after the recent price hike announced by the Changi Airport Group.
Tips jet fuel costs as the wild card as they make up most of Tiger’s operating expenses; “the key to the profitability of Tiger Airways would be the ability to pass on the fuel costs to end-customers. The other components of the operating costs are fairly predictable and generally within the control of the company.”
Shares flat at $1.86.
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