Tiger Airways: Citi downgrade to Sell and reduces TP to $1.30 from $1.85. Expect growth turbulence to intensify as regional expansion plans may face increasing turbulence due to
1) its foray into Indonesia may be fraught with risks and may not yield attractive returns;
2) suspension of sales of Philippine domestic flights and lack of progress on Thai Tiger JV suggest regulatory risk is higher than expected;….
3) simultaneously venturing into the Philippines, Indonesia and Thailand
while attempting to reverse its losses in Australia raises execution risks.
Over-ambitious expansion may also jeopardize execution, and expect Tiger’s earnings
growth to slow.
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