SMRT cut to "underperform", target cut to $1.40 by Credit Suisse

Stock Name: SMRT
Company Name: SMRT CORPORATION LTD

Research House: Credit Suisse

Price Call: SELL

Target Price: 1.40

SINGAPORE (May 5): Credit Suisse has downgraded SMRT Corp to "underperform" from "neutral" and lowered its price target to $1.40 from $1.60, saying the public transport operator's earnings in the near term are likely to suffer.

SMRT's operating trends in the quarter ended March 31 were "worrying", according to Credit Suisse analysts Sanjay Mookim and Tan Shew Heng.

Notably, its rail business incurred its maiden operating loss as manpower, repair and maintenance costs went up.