SUPER GROUP is cash generating, SMRT dividend is dwindling: "The previously unimaginable has happened. SMRT is expecting its first ever quarterly loss in its history for 4QFY3/13. This loss guidance validates our sustained SELL call, and we are reiterating it with a reduced, street-low target price of SGD1.19.
Ø SMRT has been a dividend darling in the past, with stable and growing earnings providing shareholders with a steady stream of dividends to look forward to.
However those days of stability and certainty look to be coming to an end, as our final dividend forecast for FY3/13 is correspondingly cut by 30% to SG 3.5 cts /share.
Ø In light of such firm guidance on the challenges ahead for land transport operators like SMRT, we are slashing our earnings forecasts by 25% for FY3/13 and ~10% for FY3/14-15. Our target price is reduced to SGD1.19, as we maintain our valuation peg to 15x FY3/14 PER, a full
standard deviation below mean.
SELL SMRT."
'via Blog this'
No comments:
Post a Comment