Tiger Airways: DBSV maintains BUY with TP of $0.39, as load factor continues on an uptrend in Feb.
Tigerair load factors and yields are recovering due to tightening capacity. With the rise in yields and lower fuel cost, breakeven load factor has come down significantly. Going forward, DBSV expects net profit of $44m and $61m in FY16 and FY17 respectively, compared to a loss of $250m in FY15.
House expects the stock to re-rate on sustained earnings recovery.