UBS has raised SMRT’s (S53.SG) target price to $2.50 from $2.15, based on discounted cashflow model, to reflect higher rail ridership with second phase of Singapore Circle Line opening from April 17 and more people turning to public transport as cost of vehicle ownership escalates, according to Dow Jones.
The broker expects Circle Line’s daily ridership to increase to 211,000 commuters from 38,000 currently when new stations open, which also expected to boost rental, advertising revenue.
UBS adds that Singapore government’s move to cut number of vehicle certificates of entitlement will aid SMRT as public transport becomes more attractively priced vs private modes of transport.
Keeps “buy” call. Shares +0.5% at $2.17.
SMRT target price raised to $2.50 by UBS, keeps ‘buy’ call [via]
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