Stock Name: TigerAir
Company Name: TIGER AIRWAYS HOLDINGS LIMITED
Company Name: TIGER AIRWAYS HOLDINGS LIMITED
| Research House: DMG | Price Call: HOLD | Target Price: 0.73 |
DMG & Partners upgraded its rating on Tiger Airways to neutral from sell and raised its price target to $0.73 from $0.56.
By 9:45 a.m., Tiger Air's shares were down 1.4% at $0.685 after plunging more than 60% last year.
By 9:45 a.m., Tiger Air's shares were down 1.4% at $0.685 after plunging more than 60% last year.
On Monday, the company posted its third consecutive quarterly loss and warned of a possible “significant” annual loss mainly due to issues with its operations in Australia and increasing fuel prices.
DMG said Tiger Air is “hitting the inflexion point” as the worst appears to be over for the company.
In the past year, Tiger Air was hit by flight cancellations, pilot shortages and a grounding in Australia after two incidents where pilots flew too low below safety levels, DMG said.
The brokerage said positive news including the re-launching of Mandala Airlines in April - Tiger Air is its second largest shareholder - and the likely lifting of restrictions by the Civil Aviation Safety Authority (CASA) on its Australian operations in June could lift its share price.
DMG also said the opening of an additional base in Australia by March next year will allow Tiger Air to fully utilise its entire fleet of 10 A320s as the current base can only accommodate seven.
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