SBS Transit is on the road to recovery with further easing of social distancing measures expected soon, says CGS-CIMB analysts Ong Khang Chuen and Darren Ong. In a Nov 12 note, the analysts maintain their ‘add’ call on the transport operator, with a raised target price of $3.60.

“We expect rail ridership to recover to 75% of pre-Covid levels by end-FY2020F, helped by further easing of social distancing measures in Singapore, including the relaxation of work from home arrangements and a potential transition to phase 3 of its economy reopening,” say the analysts.

Rail ridership has seen steady recovery since the lifting of circuit breaker measures in June, they add. According to SBS Transit, rail ridership for the Downtown Line and North-East Line were at 53% and 60% of pre-Covid-19 levels respectively as of end-September. 

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