Stock Name: TigerAir
Company Name: TIGER AIRWAYS HOLDINGS LIMITED
Research House: CIMB
“However, heightened oil prices following Middle East and North Africa unrest could erode Tiger’s thin profit margins, with oil-price risks for the time being outweighing the benefits of a cadet pilot program,” it says.
The house keeps its FY11-FY13 earnings estimates, but lowers its target P/E to 7X CY12 EPS from 8X, in line with its revised target for AirAsia (5099.KU), to account for oil-price risks. It adds, the main de-rating catalyst is sustained high oil prices.
Company Name: TIGER AIRWAYS HOLDINGS LIMITED
Research House: CIMB
CIMB cuts Tiger Airways (J7X.SG) target to $1.43 from $1.64 and maintains its Underperform rating. The house says it’s positive on Tiger’s plans to start a new cadet pilot training program, announced late Wednesday, which it says should provide a sustainable source of pilots to Tiger and lower risks of a re-enactment of the flight cancellations in September 2010 from a pilot shortage.
“However, heightened oil prices following Middle East and North Africa unrest could erode Tiger’s thin profit margins, with oil-price risks for the time being outweighing the benefits of a cadet pilot program,” it says.
The house keeps its FY11-FY13 earnings estimates, but lowers its target P/E to 7X CY12 EPS from 8X, in line with its revised target for AirAsia (5099.KU), to account for oil-price risks. It adds, the main de-rating catalyst is sustained high oil prices.
Shares are off 0.7% at $1.41.
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