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.

Riverstone price target raised 20% to $1.78 by Maybank Kim Eng

Stock Name: Riverstone
Company Name: RIVERSTONE HOLDINGS LIMITED

Research House: Maybank Kim Eng

Price Call: BUY

Target Price: 1.78

SINGAPORE (May 5): Maybank Kim Eng has raised its price target for Riverstone Holdings from $1.48 to $1.78, based on 18 times projected 2015 earnings, after increasing its 2015 to 2017 earnings per share estimates by 21% to 23% to factor in higher selling prices and gross margins.

The changes take into account the rubber glove maker's 1Q2015 results.

Earnings for the quarter rose to RM27 million ($10 million) from RM16 million a year earlier, aided by stronger revenue, lower raw material costs and a better product mix.

China Merchant Holdings (Pacific) downgraded to "hold" by CIMB

Stock Name: CMPacific
Company Name: CHINA MERCHANTS HLDGS(PACIFIC)

Research House: CIMB

Price Call: HOLD

Target Price: 1.16

SINGAPORE (May 4): CIMB has downgraded China Merchant Holdings (Pacific) to "hold" from "add", saying the stock is fully valued at its current price.

It has a price target of $1.16 on the stock.

The company's 1Q2015 core earnings of HK$134 million, up 4.6% y-o-y, were below expectations, weighed down by lower contributions from Guihuang Highway, its toll road business, according to CIMB analysts Roy Chen and William Tng.

Guihuang's toll revenue during the quarter was hurt by a drop in traffic volume, although earnings grew 10%, they noted.

CapitaLand price target raised to $4.20 by RHB; 'buy' call intact

Stock Name: CapitaLand
Company Name: CAPITALAND LIMITED

Research House: RHB

Price Call: BUY

Target Price: 4.20

SINGAPORE (May 4): RHB Securities Singapore has bumped up its price target for CapitaLand to $4.20 from $3.96 and kept its "buy" call.

"We like the fact that 94% of CapitaLand's China exposure by value is in Tier 1 and 2 cities, which limits downside risk," RHB analysts Ong Kian Lin and Ivan Looi wrote in a note today.

"We are keeping our eyes on more synergistic benefits related to its 'One CapitaLand' strategy - with a single listed developer integrated across asset classes, delivering a sustainable return on equity of 8%-12%," they said.

Venture Corp cut to "hold" by DBS Vickers; $8.40 target intact

Stock Name: Venture
Company Name: VENTURE CORPORATION LIMITED

Research House: DBS Vickers

Price Call: HOLD

Target Price: 8.40

SINGAPORE (May 4): DBS Vickers has downgraded Venture Corp to "hold" from "buy" as the stock is trading near its price target of $8.40, which is based on a historical mean price-to-earnings multiple of 15 times.

The contract electronics maker's growth prospects in the medium term are also uncertain, given the sluggish economic conditions in the world's major economies, according to DBS Vickers analyst Sachin Mittal.

"European economic growth has remained relatively weak over the past few years, affecting overall orders for Venture," he wrote in a note today.

SMRT cut to "reduce", target lowered to $1.64 by CIMB

Stock Name: SMRT
Company Name: SMRT CORPORATION LTD

Research House: CIMB

Price Call: SELL

Target Price: 1.64

SINGAPORE (May 4): CIMB has downgraded SMRT Corp to "reduce" from "hold" and cut its price target from $1.80 to $1.64, saying the public transport operator's rail business will face increasing challenges.

It also lowered its earnings per share estimates for FY2016 to FY2018 by 10.6% to 12.2% to factor in rising repair and maintenance costs, and higher depreciation charges associated with SMRT's expanded train fleet.

The company's rail business reported its first quarterly loss in its fiscal fourth quarter ended March 31, hurt by a bigger repair and maintenance bill.

Global Testing price target raised 17.6% to 20 cents by RHB

Stock Name: Global Testing
Company Name: GLOBAL TESTING CORPORATION LTD

Research House: RHB

Price Call: BUY

Target Price: 0.20

SINGAPORE (May 4): RHB Securities Singapore has raised its price target for Global Testing Corp from 17 cents to 20 cents, based on a discounted cash-flow valuation.

"Due to capital expenditure lowering significantly going forward, accompanied by higher profits, we switch to a discounted cash-flow valuation to better value the rich free cash flow that Global Testing will be able to generate," RHB analysts Jarick Seet and Terence Wong wrote in a note today.

They have a "buy" call on the stock.