SMRT price target raised 11.8% to $1.90 by OCBC

Stock Name: SMRT
Company Name: SMRT CORPORATION LTD

Research House: OCBC

Price Call: HOLD

Target Price: 1.90

SINGAPORE (Jan 30): OCBC Investment Research has raised its price target for SMRT Corp to $1.90 from $1.70 after increasing its earnings estimates by 4.1% for FY2015 and 15.3% for FY2016 to factor in lower fuel costs.

"We expect the lower energy costs will drive up profitability of SMRT at least in FY16," OCBC analyst Eugene Chua wrote in a note.

The public transport operator's outlook remains positive as it has shown its ability to manage expenses and is expected to recognise rental revenue from its Kallang Wave Mall from FY2016, he said.