Analysts from Maybank Kim Eng and RHB Group Research are maintaining their “buy” calls on ComfortDelGro (CDG) with target prices of $1.88 and $1.90 on the counter after Minister for Transport Ong Ye Kung announced that the government will be looking into the financing framework for the Downtown Line (DTL).

On March 5, Ong announced that the government could drop the current fee model for the DTL.

During the ministry’s Committee of Supply debate, Ong noted that SBS Transit, the operator of the DTL, bears significant commercial risks under the New Rail Financing Framework (NRFF) version 1, where it is paying a fixed licensing fee over a 15-year period starting in 2019.

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