SMRT: CEO Saw Phaik Hwa resigns. SIAS note that its highly possible for a temporary upward movement of the stock, as the resignation could appease the public at large, although fundamentally nothing has changed.
Interim CEO Tan Ek Kia will be closely watched by the mkt to see how the train’s breakdown problems will be solved. A check on Bloomberg Data show mixed views on stock with 4 Buy, 7 Holds and 7 Sell ratings.
Nomura however note that the resignation isn't likely to deal much damage to the stock as the move was largely expected, adding that new interim CEO has diverse experience in engineering, safety, operations and business mgt. House keeps Neutral rating with a $1.75 TP.
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