SINGAPORE (Jan 12): Maybank Kim Eng is maintaining its 'buy" on ComfortDelGro with $2.40 price target on expectations earnings should improve in 2018 after a lacklustre 2017 on better prospects for the rail and overseas businesses in 2018.
Furthermore, Comfort is finally joining the club of other taxis in Singapore offering dynamic pricing -- starting next Friday. Although local authorities in March cleared such efforts, which allow for fares the increase at times of high demand, Comfort held off. But that has changed after the company's tie-up with Uber.
"Maintain 'buy' and DCF-based target price of $2.40 which implies 16 times FY18 earnings," says analyst John Cheong in a Thursday report.