SMRT train delayed from Clementi to Joo Koon due to ‘track fault’ as brokers cut ratings on stock value
Posted by temasektimes on May 2, 2012
One day after SMRT trains were delayed along the North-South Line, trains along the East-West Line from Clementi to Joo Koon were delayed this morning at around 10.30 am due to ‘track fault.’
“Train fault has resulted slower train service from Clementi to Joo Koon,” the announcement was made over its PA system.
There is no explanation from SMRT on the latest spate of train disruptions as it has become the NORM now that trains in Singapore do not run on time.
Meanwhile, shares of SMRT Corp Ltd has dropped to a 29-month low, after it posted a sharp fall in quarterly earnings and reduced its final dividend, prompting several brokers to cut their ratings on the stock.
“Plagued by margin erosion and cash flow strains, we see no reason to own this stock. Further,dividend yields are no longer attractive,” said CIMB in a report.
OCBC Investment Research also downgraded SMRT to hold from buy and lowered its target price to S$1.71 from S$2.04 due to lower expected earnings as its expenditure in 2013 will rise to S$500 million as a result of higher expenses incurred for upgrading its assets.