Company Name: TIGER AIRWAYS HOLDINGS LIMITED
| Research House: UOB KayHian | Price Call: SELL | Target Price: 0.51 |
Shares of Tiger Airways Holdings fell nearly 4% on Monday after the budget carrier swung to a fourth-quarter net loss from a net profit a year earlier and warned of a challenging business environment.
Tiger shares dipped as much as 3.9% to $0.615, underperforming the FT ST Small Cap Index (.FTFSTS) which lost 0.1%. Tiger stock has dropped around 3% so far this year.
Tiger posted a net loss of $16.4 million for the three months ended March, compared to a net profit of $1.4 million a year ago, dragged by the grounding of its aircraft and flying restrictions in Australia as well as high fuel costs.
“The group continues to face a challenging business environment and remains exposed to high and volatile fuel prices,” the carrier said in a statement.
UOB Kay Hian lowered its price target on the stock to $0.51 from $0.64 and maintained its sell rating. It said operating losses worsened sequentially for Tiger’s Singapore operations due to low yields and for Tiger’s Australia operations because of low utilisation.
The broker cut its net profit forecast for Tiger’s 2013 fiscal year by $9 million to $30 million. It said major risks include continued losses in Australia, further provisions for doubtful debts and its status as the guarantor on Mandala Airlines’ leases.
No comments:
Post a Comment