SINGAPORE (May 17): SBS Transit’s share price is up some 51% this year alone. But despite the surge, the downside may be limited.
Investors tend to flock to comparative plays when companies are privatised. An example of this is the privatisation of Keppel Land, which benefited mid-cap property players such as UOL Group.
In this vein, the privatisation of SMRT in 2016 has probably put a floor under SBS Transit’s share price and valuation.