Stock Name: TigerAir
Company Name: TIGER AIRWAYS HOLDINGS LIMITED
Research House: UOB KayHian
UOB KayHian, which put its Sell rating and $1.54 target under review, says “potential sellers include Ryanasia and Indigo Singapore Partners, who have been selling shares since last August. Potential buyers include Capital Group and Temasek Holdings, who have bought about 4.1 million and 3.5 million shares since Oct. 10.”
Company Name: TIGER AIRWAYS HOLDINGS LIMITED
Research House: UOB KayHian
Tiger Airways (J7X.SG) is down 4.8% at $1.58 after a married deal of 18.6 million shares was executed this morning at $1.581, sharply below Wednesday’s closing price of $1.66.
UOB KayHian, which put its Sell rating and $1.54 target under review, says “potential sellers include Ryanasia and Indigo Singapore Partners, who have been selling shares since last August. Potential buyers include Capital Group and Temasek Holdings, who have bought about 4.1 million and 3.5 million shares since Oct. 10.”
Analysts K Ajith and Eugene Ng say they have been bearish on the stock since listing and had argued its relatively high valuation was likely to cause the stock to underperform.
They note the stock is now close to its listing price of $1.50, and they are now less bearish due to expansion to Thailand and the Philippines, while higher capacity (Tiger will be taking delivery of 10 aircraft in FY12) means Tiger will have greater efficiency (lower unit cost). “The greatest risk at this stage is fuel cost, they add.
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