Analysts positive on ComfortDelGro upon its gradual road to recovery

Analysts have recommended investors to continue accumulating shares in ComfortDelGro (CDG), following the release of the transport operator’s 4QFY2020 results on Feb 15.

CGS-CIMB Research analysts Ong Khang Chuen and Darren Ong have maintained “add” on the counter with an unchanged target price of $1.70, as they believe the “worst is over” for the group.

While they expect an improvement on the group’s earnings due to recovery in ridership, the analysts have reduced CDG’s earnings per share (EPS) for FY2021 and FY2022 by 4.0% to 8.4% due to their “assumption on taxi fleet population”.