Tiger Air kept at 'reduce' with target price of 18 cents by CIMB

Stock Name: Tigerair
Company Name: TIGER AIRWAYS HOLDINGS LIMITED

Research House: CIMB

Price Call: SELL

Target Price: 0.18

SINGAPORE (Jan 27): CIMB Research is maintaining its "reduce" call on Tiger Airways with a higher target price of 18 cents as the budget carrier continues "to face huge longer-term challenges".

In a Jan 26 report, analysts Raymond Yap and Gan Jian Bo say Tigerair Singapore's relatively stagnant forecast capacity to the Asean region of around 33,000 seats by July 2015 stands in marked contrast against other carriers' expansion.

Between July 2014 and July 2015, the seat capacity for Singapore to Asean is expected to rise 8.8%, against Tigerair Singapore's reduction of 1.2%.