Maybank Kim Eng analyst Kareen Chan and chartist Nik Ihsan Raja Abdullah believe that a new upcycle in ComfortDelGro Corp’s (CDG) share price lies ahead.

The bullish outlook comes after CDG broke out of its consolidation at $1.72, with the analysts opining that the consolidation is likely at the tail end with the stock forming a new base right above 13, 33 and 88-day simple moving average (SMA) lines.

“This indicates that the overall signal has shifted from neutral to bullish and a new upcycle is about to unfold to the next resistance at $1.81, then $1.99,” the analysts say in an April 5 research note.

Chan has maintained her ‘buy’ call on CDG with an unchanged target price of $1.88.

Chan says CDG’s fundamentals support the outlook, as vaccine rollouts across key markets such as Singapore, Australia and UK are on track and the easing of work-from-home (WFH) measures, with 75% of staff allowed to return to the workplace from April 5 and caps on events easing, should lift demand for domestic transport. 

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In addition, Chan says that the potential revision of the rail framework could lead to an additional 49% or 4.3 cents upside to her estimated FY2021 ending December earnings per share, taking it to 13 cents.

As at 12.24 pm, shares in CDG are up 4 cents or 2.29% higher at $1.79.