Tiger Airways: Citi maintain Sell, TP $0.60. Note that grp is not yet a turnaround story and adjust FY12-14E NP estimates by 2-4% after incorporating the effects of Tiger’s rights issue (ex-date 4-Oct-2011) raising net proceeds of $155.2mn.
Also adjust per-share estimates after taking into account the effects of the rights issue on both historical and future shares outstanding. After the equity injection (at book value), target P/B multiple to 1.5x FY13E P/B (from 2x P/B previously), and new ex-rights TP of $0.60.
1.5x FY13E P/B is also consistent with the current forward P/B multiples of Maintain Sell as the concerns we highlight below may take time to resolve.
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