Tiger Airways

Tiger Airways: JP Morgan maintains O/w with $0.90 TP. Note that Tiger Singapore and Tiger Australia’s load factors continue to improve, which is positive. Its tie-up with Scoot should progressively help boost traffic. Recently announced rights and preferential issue will help strengthen the balance sheet and fund capex (please click here for our note for more details). Believe the worst is over and expect Tiger Airways’ (TGR) earnings to improve in FY14 and nearly triple by FY15. House bullish on the long-term growth of Asia’s budget travel market and stay OW on TGR.