Friday, June 25, 2010

SMRT

Kim Eng maintains Sell with $1.90 target. Likely to see upward pressure on costs, in view of higher personnel costs, asset repair and maintenance, and costs of strengthening security following recent breach at one of its train depots. Stock now trading near peak historical multiple of 21x PE, and appears fully valued following recent strong performance. Recommend switch into Comfort DelGro.

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