OCBC is maintaining its “hold” view on SMRT Corp. but raising its fair value estimate to $1.51 from $1.43 to account for the stronger third quarter earnings.
OCBC says it remains cautious about increasing expenses of the transport operator and higher competition after shares outperform the local benchmark.
Year to date, SMRT's shares have risen 6.3%, in contrast to a 12% decline in the Straits Times Index.
OCBC says the outperformance can likely be explained by the better-than-expected third quarter earnings. However, revenues may be weaker ahead as a new train line in Singapore takes away some passengers and a fare reduction cut takes effect.
As at 11.21am, SMRT is up 0.62% at $1.61, compared with a 0.06% gain by the Straits Times Index.
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OCBC says it remains cautious about increasing expenses of the transport operator and higher competition after shares outperform the local benchmark.
Year to date, SMRT's shares have risen 6.3%, in contrast to a 12% decline in the Straits Times Index.
OCBC says the outperformance can likely be explained by the better-than-expected third quarter earnings. However, revenues may be weaker ahead as a new train line in Singapore takes away some passengers and a fare reduction cut takes effect.
As at 11.21am, SMRT is up 0.62% at $1.61, compared with a 0.06% gain by the Straits Times Index.
Click Here To Register For Free Trial Services OR Give A Missed Call : +6531581402 Follow Us On Twitter : www.twitter.com/epicresearchsg Like Us On Facebook : www.facebook.com/EpicResearchSingapore Need Any Assistance Feel Free To Mail Us at : info@epicresearch.sg
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