SMRT: CLSA upgrades SMRT to Underperform from Sell with $2.05 TP. However note that there are still no catalysts in the short-term. Expect the rail operator's new Circle Line to take another 3-4 yrs to breakeven. Checks indicate only a slight increase in daily Circle Line ridership for Oct and Nov…
Add that near-term cost pressure is mounting as SMRT adds 220 more trains each wk in Dec to cater to the holiday season and suggests switching to rival ComfortDelgro for better valuations and prospects.
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