OCBC Investment Research raised its target price on Tiger Airways Holdings to $0.83 from $0.76 and
maintained its buy rating, citing the Singapore budget carrier’s improved operations.
Tiger shares were up 0.7% at $0.695 and have risen around 9% so far this year versus the 15% gain in the FT ST Small Cap Index.
Tiger’s passenger yields in its fiscal first quarter rose 9% from a year earlier, while the fall in average jet fuel prices provided some cost relief, OCBC noted.
OCBC said the first-quarter operating profit posted by Tiger’s Singapore operations bodes well for the rest of the 2013 fiscal year as it is no longer burdened with excess aircraft, allowing it to moderate its capacity expansion in 2013.
Tiger’s Australian unit is primed for recovery with the ramping up of its operations to 60 sectors a day, after being hit by flying restrictions, and nd the expected peak travel season later in the year, OCBC said.
No comments:
Post a Comment