Land Transport: Deutsche has sector report. Note that policy fears overdone, and Comfort Delgro likely due for re-rating. Recommend Buy ComfortDelgro (TP $1.70) for re-rating potential, with Hold call on SMRT. Add that 2H11 catalysts (eg fare review and award of DTL) could lift sentiment on the sector….
Note however that SMRT has limited positive near-term catalysts, stock continues to trade at a premium to historical valuations. Maintain Hold rating for the stable 4% div yield.
No comments:
Post a Comment