SMRT - SMRT Corp downgraded to Neutral from Buy by Nomura

Stock Name: SMRT
Company Name: SMRT CORPORATION LTD
Research House: Nomura

Nomura has cut SMRT Corp. (S53.SG) to Neutral from Buy, lowers price target to $2.05 from $2.45 on back of expected higher cost pressures for Singapore public transit stock over next 6-8 months, says Dow Jones.



Nomura is cutting FY 2011, FY 2012 earnings by 21% to account for higher costs and steeper losses on newly opened Circle Line. But expects growth to resume in FY 2012 as Circle Line ridership improves, more stations open.

Research house notes while costs will impact earnings, SMRT “still stands to benefit from the government’s plans to double Singapore’s rail network by 2020.” Share price last down 2.4% at $2.05.