Tiger Airways -1.9% to $1.52 after its 4Q net profit plunges 94% yoy to $1.3m, hurt by higher fuel costs. Cimb, which has an U/P rating, notes that excluding a $1.3m forex gain on borrowing, Tiger would have barely broken even. Adds FY11 core net profit forms 49% of consensus forecast, citing high fuel costs & aggressive pricing ate into margins.
House keeps its FY12/13 estimates & $1.39 target, based on 8X CY12 P/E, pegged to the industry's historical mid-cycle forward average but expects de-rating catalysts from:
1) lower-than-expected demand in Australia;
2) delays to the Thai-Tiger launch;
3) disappointing demand in Asia.
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