SINGAPORE (June 29): Although taxi operator ComfortDelGro last Friday issued a profit guidance announcing that it is expected to report a net loss of 1H20, Maybank Kim Eng remains bullish on the stock and recommends investors to “buy” on dips at a target price of $1.98.

“We believe investors should buy on price weakness as Comfort continues to focus on expanding its stable, non-volatile bus contracting model, which accounted for 63% of FY19 revenue,” says analyst Kareen Chan in a Sunday report.

Comfort’s expected 1H20 loss is likely due to impairment in its taxi division and significant Covid-19 impact, and operation weakness has already been factored into the analyst’s forecast.

To continue reading,

Sign in to access this Premium article.

Subscription entitlements:

Less than $9 per month
3 Simultaneous logins across all devices
Unlimited access to latest and premium articles
Bonus unlimited access to online articles and virtual newspaper on The Edge Malaysia (single login)

Stay updated with Singapore corporate news stories for FREE

Follow our Telegram | Facebook