Tiger Airways: Morgan Stanley maintains E/w but slashes TP to $0.75 from $0.96, after factoring in Rights Issue.
Note that deepen 2011E net loss for Tiger, reflecting steeper loss for its Australian operation, and also cut EPS estimates for F2012 and F2013 to reflect a 2-for-1 rights issue. See 2 probable scenarios for its’ Australian operation:
1) remain in Australia;
2) exit or downsize Australia.
Longer term, the decision to downsize or exit might not be a negative outcome for Tiger if aircraft resources can be deployed on the more profitable ASEAN markets, rather than the less profitable Australian operation.
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