SMRT: Cimb downgrades to Underperform from Neutral, cuts target price to $1.95 from $2.31 after lowering FY12-13 earnings estimates by 3-4% to factor in higher capex assumptions. Remains wary of losses on the Circle Line with the opening of more stations in 2011 & margin pressure from rising fuel & electricity costs. Hints that Circle Line may take 4 years to break even vs 3 years for North-East Line, run by rival SBS Transit.
Notes North-East Line ridership supported by large population catchment, giving it edge over Circle Line. Technicals are deteriorating with ADX, Stockastics, MACD & RSI all exhibiting negative signals. Stock about to penetrate 50-day MA with next support at $2.00 level.
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