CIMB ups Tiger Airways target to $1.43 vs $1.39

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

CIMB Research has raised its target price for Singapore budget carrier Tiger Airways (TAHL.SI) to $1.43 from $1.39 while keeping its underperform rating.

CIMB lowered its fiscal 2012 earnings estimate for Tiger by 10.1% but raised 2013-2014 forecasts by 4.8-10.3%. This follows Tiger’s comments it will not expand its Australian capacity due to tough operating conditions in the country.

Tiger Airways’ Australian operations reported its third year of losses for fiscal 2011, due to high fuel prices and poor demand. Therefore, the management will focus on its Asian business instead.

“Air travel remains strong in Asia and Tiger has planned a 41% increase in seat capacity in the current northern summer scheduling season,” said CIMB in a report.

At 9:17 a.m., shares of Tiger Airways were 1.3% lower at $1.51. They have fallen 18.8% since the start of the year.