SINGAPORE (Jan 27): DBS Vickers Securities has upgraded SMRT Corp. to “hold” from “fully valued” and raises its target price on the Singapore public transport operator to $1.50 from $1.24, after a 63% rise in fiscal third quarter net profit.

“We may have been too bearish on our costs assumptions previously, and we now see a sustained cost environment ahead providing sustainability to the group's profit levels, barring further significant and unforeseen train disruptions,” DBS says.

The house terms SMRT's third quarter results as above its expectations as SMRT reports gains in other operating income due to government grants and lower energy costs.

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