Company Name: TIGER AIRWAYS HOLDINGS LIMITED
Research House: MacQuarie
Macquarie has downgraded Singapore budget carrier Tiger Airways (TAHL.SI) to “underperform” from “neutral”, and lowered its target price to $1.50 from $1.80.
Macquarie said Tiger Airways is looking fully valued compared to its peers and the firm may be more sensitive to the rise in jet fuel prices.
The brokerage said Tiger does not have fuel surcharges like its competitor Singapore Airlines (SIA) (SIAL.SI), and the firm’s strategy of proactively managing ticket pricing is unlikely to be a large differentiator.
The risk related to retaining pilots is also higher for Tiger compared to SIA as Tiger is likely to have a tighter cost base and fewer resources to get spare pilots when there is a sudden pilot shortage, Macquarie added.
At 9:09 a.m., Tigers shares were down 0.6% at $1.68 on a volume of 32,000 shares.
No comments:
Post a Comment