SMRT kept at 'hold' by CIMB with $1.80 target price

Stock Name: SMRT
Company Name: SMRT CORPORATION LTD

Research House: CIMB

Price Call: HOLD

Target Price: 1.80

SINGAPORE (Apr 20): CIMB has maintained its "hold" call on SMRT Corporation with a target price of $1.80 despite the transport operator's announcement of collaboration with OMGTEL (OMG) to be the fourth telco in Singapore.

According to the agreement, SMRT was offered the opportunity to invest up to $34.5 million via an option to subscribe for shares in OMG. The exercise of the option would be subject to OMG winning the telco licence, among other things.

OMG was incorporated in Singapore in October 2014 by Consistel Pte Ltd for the specific purpose of the telco bid.