Stock Name: TigerAir
Company Name: TIGER AIRWAYS HOLDINGS LIMITED
Research House: CIMB
However, heightened oil prices following the Middle East unrest could erode Tiger’s thin profit margins and outweigh the benefits of Tiger’s new programme, the brokerage said.
Company Name: TIGER AIRWAYS HOLDINGS LIMITED
Research House: CIMB
CIMB Research has cut its target price for Singapore’s budget carrier Tiger Airways (TAHL.SI) to $1.43 from $1.64 and maintained its underperform rating.
CIMB said that Tiger Airways’s plans to introduce a cadet pilot training programme later this year is a positive move as it will provide a sustainable supply of pilots.
CIMB said that Tiger Airways’s plans to introduce a cadet pilot training programme later this year is a positive move as it will provide a sustainable supply of pilots.
However, heightened oil prices following the Middle East unrest could erode Tiger’s thin profit margins and outweigh the benefits of Tiger’s new programme, the brokerage said.
While Tiger has hedged 35% of its fuel requirements for up to 15 months forward, they will have to buy the remaining fuel at spot prices. A US$5 increase in fuel costs could shave its 2011-2013 earnings by 14 to 19%, CIMB said.
At 11:23 a.m., Tiger Airways shares were down 0.7% at $1.41 on a volume of 353,000. It has fallen 24.2% since the start of this year.
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