Tigerair: DBSV maintains its Buy rating and raised its TP to $0.42 as the house continues to like the stock as a recovery play, citing that Tigerair is expected to post its first full-year profit in five years in the coming year.
Although Tigerair's 4QFY15 results released yesterday missed DBSV's expectations on the bottom line, yields were higher than expected and current fuel prices of US$73/barrel (Apr) remain well below its assumption of US$90/barrel.
With a revitalised balanced sheet, and a recovery in earnings and cash flow, DBSV's TP is lifted based on 8x FY15/16 EV/EBITDA.
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