Brokers' take

SMRT Corporation | Sell

Oct 28 close: S$1.485

Target price: S$1.10

Maybank Kim Eng, Oct 28

THE company's earnings outlook remains lacklustre. We forecast sustained losses for the rail business due to the impending fare cuts of 1.9 per cent from end-2015. Further, higher costs to improve system reliability are not captured in the fare adjustment formula. We maintain that the street has taken a far too simplistic view on the impending rail transition and…