Stock Name: TigerAir
Company Name: TIGER AIRWAYS HOLDINGS LIMITED
Tiger’s management will be in discussion with the Civil Aviation Safety Authority of Australia (CASA) to resolve concerns, but with approval by the Federal Court the suspension could be extended beyond July 9.
Company Name: TIGER AIRWAYS HOLDINGS LIMITED
| Research House: DBS Vickers | Price Call: HOLD | Target Price: 0.90 |
DBS Vickers has downgraded Singapore’s budget carrier Tiger Airways (TAHL.SI) to sell from hold and lowered its target price to $0.90 from $1.50.
Following the grounding of Tiger’s Australian fleet for one week due to safety concerns, Tiger could incur losses of $2 million per week.
Following the grounding of Tiger’s Australian fleet for one week due to safety concerns, Tiger could incur losses of $2 million per week.
Tiger’s management will be in discussion with the Civil Aviation Safety Authority of Australia (CASA) to resolve concerns, but with approval by the Federal Court the suspension could be extended beyond July 9.
DBS has lowered its fiscal 2011 and 2012 earnings estimates for Tiger by 25% and 13% respectively on lower load factor assumptions, but said it believes the suspension of operations may not hurt Tiger as much financially as it will hurt its image.
Tiger’s other ventures in Thailand and Philippines have also been hit by regulatory concerns, and DBS said it does not expect an early resolution of its problems there.
At 11:27 a.m., Tiger shares were up 7% at $1.07. It shares have dropped around 43% so far this year.
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