Tiger Airways price target raised 50% to 27 cents by CIMB

Stock Name: Tigerair
Company Name: TIGER AIRWAYS HOLDINGS LIMITED

Research House: CIMB

Price Call: SELL

Target Price: 0.27

SINGAPORE (May 7): CIMB has raised its price target for Tiger Airways to 27 cents from 18 cents as it now expects the carrier to return to the black this year on lower fuel prices and rising yields.

Its "reduce" call on the stock has not changed, as the airline will find it much harder to improve profitability substantially, according to CIMB analyst Raymond Yap.

"It would be much harder to improve profits materially from this point onwards since the Asean aviation markets remain very oversupplied, putting aside the drop in fuel prices," he wrote in a note.