Tiger Airways

Tiger Airways: CIMB maintains Neutral with $0.81 TP. House tip speed bumps on Tiger’s fortunes ride on Tiger Aus breaking even, which could be delayed by pressure from the ongoing Qantas-Virgin rivalry. However, note that Tiger should be out of the woods in later qtrs with the help of better load factors and fleet utilisation. Forecast bigger FY13 losses and cut FY14-15 EPS by 6% for lower yields and SEAIR losses. This and a rollover to CY14 reduce our target price based on 13.5x P/E, the LCC industry’s 5-year forward average.