SMRT - SMRT raised to Hold by Citi; Start-up losses priced in

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

Citigroup upgrades SMRT (S53.SG) to Hold from Sell, raises target price to $2.05 from $1.90 after rolling over valuation.



Says continued losses at Singapore rail operator's new Circle Line likely priced in at current share price, with company appearing on track to recover to historic 25% ROE performance by fiscal FY13 ending March.



Expects quarterly losses of $5 million-$7 million for Circle Line over next 4-6 quarters to be manageable, with profits from other business segments, such as high-margin rental/advertising, helping to cushion overall impact on bottomline. Shares off 0.5% at $2.01.