Shares of Tiger Airways Holdings Ltd rose as much as 2.7 percent after the Singapore budget carrier reported a third-quarter net profit of S$2 million ($1.6 million), the first time in seven quarters it made money.
Within 15 minutes of trading, Tiger shares advanced to as high as S$0.77 with nearly 2 million shares traded, more than half the average full-day volume over the past 30 days.
“We view this set of results favourably as revenue growth met our expectations, and Tiger’s first net profit validates our turnaround view for the second half of 2013,” OCBC Investment Research said in a report.
OCBC raised its target price on the stock to S$0.86 from S$0.81 and maintained its ‘buy’ rating.
After taking charge in August, new Group Chief Executive Koay Peng Yen struck a deal to sell a stake in its loss-making Australian unit and entered into other partnerships, but faces a big challenge in a fiercely competitive Southeast Asian market.