Tiger has been on a downtrend since beginning of last year. Seems like no end in sight at the moment. A break below 0.415 then 0.400 can see it go lower. CFD sell trade if support breaks down with target to 0.35 first. Only a break up above 0.46 can indicate an end to the down trend and a possible short term reversal upwards.
NEWS – 20 FEB 2014
#Tiger Air: SCB downgrade to U/p with TP $0.31. The house notes that Tiger Airways reported normalised losses of $30mn in 3QFY14, as chronic overcapacity in Singapore resulted in an $8.8m operating loss against expectation of a marginal operating profit.
Losses from the associates ballooned to a staggering $111.4mn. Although we are positive on Tiger’s ‘assetlight’ strategy, and believe it will take time to bear fruit and forecast associate losses of $264m and $ 61m in FY14E and FY15E, respectively.
Overall downgrade Tiger to Underperform from In-Line in view of expectation of losses.
Losses from the associates ballooned to a staggering $111.4mn. Although we are positive on Tiger’s ‘assetlight’ strategy, and believe it will take time to bear fruit and forecast associate losses of $264m and $ 61m in FY14E and FY15E, respectively.
Overall downgrade Tiger to Underperform from In-Line in view of expectation of losses.
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