Monday, January 31, 2011

TigerAir - RBS upgrades Tiger Airways to 'hold' from 'sell'

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


RBS has upgraded Singapore budget carrier Tiger Airways (TAHL.SI) to “hold” from “sell” and raised its target price to $1.90 from $1.58.



Tiger Airways said on Friday its third quarter net profit rose 60% to $22.6 million due to stronger passenger volumes and higher average passenger fares.


RBS said the firm’s passenger numbers grew 13.4% from a year earlier and the average fare per passenger rose by 4.6%, indicating that the airline’s reputation among travellers has been repaired after flight cancellations last year.

The brokerage had downgraded Tiger Airways to “sell” last September after the firm suffered a high number of flight cancellations due to pilot shortage, but it has been operating normally since November.

At 3:15 p.m., Tiger shares were down 1.7% at $1.74 on a volume of 1.1 million shares.



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