Why you should dump SMRT for ComfortDelgro stocks
Latter has stronger yields, argues OSK-DMG.
"We recommend investors to switch from SMRT to ComfortDelGro, for stronger yields arising from the latter’s better growth potential," says OSK-DMG, after SMRT reported poor 2QFY14 results which saw its PATAMI slide 57% yoy to S$14.4m.
Currently SMRT is trading at an unattractive valuation, the research firm adds, compared to ComfortDelGro. SMRT is also set to grapple with still-escalating staff costs that will hurt the group's margins despite an anticipated fare hike.