Monday, May 23, 2011

Tiger Airways Holdings rated 'underperform' by CIMB

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

CIMB in a May 23 research report says: "During its analysts' briefing, management discussed the tough operating conditions in Australia but remained bullish on Asian demand. Tiger will no longer expand its Australian capacity, but instead focus on Asia.

"In response to this, we lower our cost estimates and adjust our operating assumptions. Our FY2012 estimate drops by 10.1% but FY2013-2014 forecasts rise by 4.8-10.3%. Our target price also climbs to $1.43 (from $1.39) following our adjustments, still based on 8X CY12 P/E.

"Execution of Tiger's plans remains uncertain in the near term, providing potential de-rating catalysts, though given time, Tiger's business model could mature. MAINTAIN UNDERPERFORM."

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